Mexico's tariffs on India are a double whammy after US tariffs

"The steep hikes by Mexico have devastated several Indian industries already reeling under crushing US tariffs. Kolkata, India Pankaj Chadha has been running a steel manufacturing unit in Mumbai, India's financial capital, for the past four decades. The 65-year-old told Al Jazeera that his company exports products mostly to the United States and Mexico, where they are used in various industries."

"The recent spike in tariffs in both countries, however, has come as a crushing blow for Chadha. Before the tariffs, he had sales of roughly $5m and $8m to the US and Mexico, respectively. But those have since been halved. I have lost 50 percent of my business in Mexico and the US since the tariffs came into effect. It is a severe blow to my business as I was focusing on Mexico after the US tariffs, but the future looks bleak there."

"US President Donald Trump imposed a 25 percent tariff on India in August and soon tacked on another 25 percent as punishment for its continuing purchase of Russian oil, which, he said, was helping to fund Russia's war on Ukraine. Now, within months of those punishing tariffs devastating businesses and jobs across industries in India, including diamond cutting, shrimp farming, and carpet manufacturing, businesses are dealing with equally high tariffs from Mexico, a double whammy, they say."

Pankaj Chadha, a Mumbai steelmaker, exported mainly to the US and Mexico and saw sales to each market fall sharply after recent tariffs, with pre-tariff sales of roughly $5m and $8m halved. US tariffs imposed a 25 percent duty in August and an additional 25 percent as punishment for continued purchases of Russian oil. Mexico imposed import tariffs of 5–50 percent on over 1,400 products from non-FTA countries on January 1. Mexican authorities cite boosting domestic production, correcting trade imbalances, and safeguarding employment, while Indian businesses interpret the measures as protectionist and harmful to exporters across multiple industries.

Read at www.aljazeera.com