Starting January 1, 2026, Mexico tariffs India and other Asian nations will reshape trade flows across the Pacific. Mexico’s Senate approved steep import duties reaching up to 50% on more than 1,400 products from countries without free trade agreements. Meanwhile, Indian exporters face a challenging reality as their goods become more expensive in Mexico’s market.

The new tariff structure affects major sectors. Automobiles will see duties jump from 20% to 50%. Similarly, auto parts will face tariffs between 25% and 50%. Furthermore, textiles and apparel will carry duties of 30% to 35%. Steel products will also face increased rates of 35% to 40%.

Impact on Indian Exports

India exported goods worth $8.9 billion to Mexico in 2024. However, the automobile sector will suffer the most damage. Major exporters include Volkswagen, Hyundai, Nissan, and Maruti Suzuki. Together, these companies ship around $1 billion worth of vehicles annually to Mexico.

🔴 BIG BREAKING

Mexico Slaps a Whopping 50% tariff on Indian Imports Starting 2026!

Auto Parts, Textiles, Steel, Cars, Machinery, Electronics, Chemicals, Aluminum—all Hammered.

India’s $8.9B Exports to #Mexico in 2024 now face a $11.7B Trade Meltdown, Wiping Out Our $6.1B… pic.twitter.com/W6W5gS7nLZ

— তন্ময় l T͞anmoy l (@tanmoyofc) December 11, 2025

Mexico ranks as India’s third-largest car export destination after South Africa and Saudi Arabia. Additionally, auto components worth $600-700 million will face higher duties. Other affected sectors include machinery, electrical equipment, aluminum, plastics, and pharmaceuticals.

Key Sectors at Risk

Why Mexico Raised Tariffs?

Mexican President Claudia Sheinbaum defended the move as protecting domestic industries. Moreover, Mexico imported $130 billion worth of goods from China in 2024, creating a massive trade imbalance. The government expects to generate $3.76 billion in additional revenue.

Nevertheless, analysts believe the timing connects to the United States pressure. The USMCA (United States-Mexico-Canada Agreement) review is scheduled for 2026. Consequently, Mexico wants to demonstrate its commitment to reducing Chinese imports into North America.

India’s Response

Before the tariffs passed, Indian automobile manufacturers urged their government to intervene. They wrote letters to Mexico’s Senate requesting status quo maintenance. Unfortunately, these efforts failed to change the outcome.

Now, India is exploring diplomatic solutions. Options include negotiating a free trade agreement or a partial scope arrangement covering automobiles and steel. However, these negotiations will take time while exporters face immediate cost increases.

Winners and Losers

Mexican steel, textile, and auto-parts manufacturers will benefit from reduced competition. On the other hand, Indian exporters will struggle with higher costs. Additionally, Mexican consumers may face increased prices for imported goods.

Countries affected by the tariffs include India, China, South Korea, Thailand, and Indonesia. In contrast, nations with existing trade agreements like the United States, Canada, and the European Union, remain exempt.

What Comes Next?

Experts predict India’s exports to Mexico could fall by 25% to 40%. The automobile sector faces the steepest decline. Therefore, Indian companies are reassessing their export strategies.

Some manufacturers may redirect shipments to other markets. Others might consider local production in Mexico to avoid tariffs. However, such investments require significant capital and time.

The Mexico tariffs India situation demonstrates how quickly global trade conditions can shift, forcing exporters to adapt their strategies or risk losing market share in key destinations.

Many taxpayers continue experiencing ITR refund delays months after the September 16 filing deadline. Although the Income Tax Department processed most refunds, thousands remain pending. Moreover, several factors contribute to these delays, ranging from bank account issues to data mismatches.

Common Reasons Behind Delays

Understanding why refunds get stuck helps taxpayers resolve issues faster. Here are the main causes:

Processing Timeline

Normally, the Income Tax Department credits refunds within 4-5 weeks after e-verification. However, this year stricter screening processes have extended waiting times. Furthermore, the Centralized Processing Centre in Bengaluru examines large refunds more carefully.

Ravi Agrawal, Chairman of the Central Board of Direct Taxation, explained that authorities analyze high-value claims flagged by the system. Additionally, they send notices to taxpayers requesting revised returns when needed.

How to Check Your Refund Status?

Follow these simple steps to track your refund status:

1. Visit the income tax portal at eportal.incometax.gov.in
2. Log in using your User ID and password
3. Click on ‘e-File’ tab
4. Select ‘Income Tax Returns’
5. Choose ‘View Filed Returns’
6. Click ‘View Details’ to see your refund status

The portal shows whether your refund is issued, under review, or pending additional information.

Key Problems and Solutions

Bank Account Issues: Double-check your account number and IFSC code. Also, ensure your bank account is pre-validated on the portal. Any mismatch between your PAN name and bank account name will block the refund.

Data Mismatches: Inconsistencies between Form 26AS, Annual Information Statement (AIS), and Form 16 trigger manual reviews. Therefore, verify all documents match before filing. If you find errors, submit feedback through the portal or file a corrected return.

Multiple Income Sources: Taxpayers with stock market activities or foreign income face longer verification times. Consequently, these cases require more detailed examination.

What to Do If Your Refund Is Stuck?

If your refund hasn’t arrived within five weeks, take these steps. First, check your email for notices from the Income Tax Department. Next, review the portal for any discrepancy messages. Then, raise a grievance ticket if necessary. Finally, ensure your PAN remains active and linked to Aadhaar.

Tax experts believe ITR refund delays stem from enhanced verification procedures rather than system failures. As the backlog clears, processing times should improve gradually.