It is a season of tariffs, and countries are forced to change their economic policies, often reeling under the strain of American economic policies, either owing to economic foresight or to readjust their own position apropos the great power competition and its repercussions on trade. Mexico is the latest example of a country that has chosen to go the extreme path, increasing tariff policy dramatically. Mexico's Senate approved new duties of up to 50% on imports, applicable to certain items from January 2026. While the majority of items will see a hike of up to 35%, some could go much higher. The new duties will be applicable to China, India and a host of other Asian countries, including South Korea, Thailand and Indonesia, which do not have a Free Trade Agreement (FTA) with Mexico.

Mexico has moved to the forefront of the evolving trade confrontation with the US, primarily because it is America's largest trading partner. Within Washington, particularly under the Trump administration's renewed protectionist lens, there is intensified concern that Mexico has increasingly functioned as a dumping ground for Chinese goods and as a convenient trans-shipment hub for Asian exporters. US policymakers argue that Chinese firms, alongside other large Asian........

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