Mexico Hits India Diamantaires with 50% Tariff

(IDEX Online) - Mexico is imposing its own tariff of up to 50 per cent on diamonds imported from India.

It is following the US lead, and preventing Indian diamantaires using it as a "bridge" - shipping rough or semi-cut stones there, polishing them there (to qualify as "Mexican"), then delivering them tariff-free to the US.

The United States-Mexico-Canada Agreement free trade pact (USMCA) allows Mexico to export goods duty-free to the US as long as they're "made" there, which covers diamond polishing.

But on 10 December, Mexico's Senate approved tariffs of up to 50 per cent on a range of imports from India, as well as China, South Korea, Thailand, and Indonesia, effective from 1 January 2026. Exact details have yet to be made public.

This effectively scuppers plans already being worked on by Indian manufacturers to set up facilities in Mexico - not actually outlawing the move, but rendering it commercially pointless. The 50 per cent tariff is likely to impact small and medium-sized enterprises, rather than larger ones.

The tariffs form part of a broader Mexican move against Asian suppliers who do not have a free trade agreement (FTA), pushing them towards negotiating one. India currently has a $2.8bn trade surplus with Mexico.