New Delhi: India has signaled a firm response after Mexico approved a steep 50 per cent hike in import tariffs on a range of products originating from countries without a bilateral trade agreement, including India. The move has prompted New Delhi to caution that it may take “appropriate measures” to protect the interests of Indian exporters while continuing diplomatic engagement with Mexican authorities.
An official familiar with the matter said the government is closely monitoring the situation and remains committed to defending Indian trade interests. While stressing India’s preference for dialogue, the official made it clear that New Delhi reserves the right to act if exporters are adversely affected by the sudden tariff escalation.
According to the government, unilateral increases in most favoured nation (MFN) tariffs, particularly without prior consultations, run counter to the spirit of cooperative economic engagement between trading partners. Such steps, officials noted, also undermine the principles of predictability and transparency that form the foundation of the multilateral trading system.
India had already raised its concerns with Mexico when the tariff proposal was first introduced in the form of a bill. The Department of Commerce is currently in discussions with Mexico’s Ministry of Economy to identify mutually acceptable solutions that are consistent with global trade norms. Officials indicated that New Delhi remains hopeful of resolving the issue through sustained and constructive engagement.
As part of these efforts, a high-level meeting has already taken place between India’s Commerce Secretary Rajesh Agrawal and Mexico’s Vice Minister of Economy Luis Rosendo. Further follow-up meetings are expected in the coming weeks as both sides explore ways to ease trade frictions and preserve commercial ties.
The new tariffs, aimed at protecting Mexico’s domestic industries and producers, are scheduled to come into force from January 1, 2026. Despite the setback, India reiterated the importance it places on its relationship with Mexico and expressed its willingness to work collaboratively toward a stable and balanced trade environment that benefits businesses and consumers in both countries.
Mexican media reports indicate that the higher duties will apply to a wide range of goods, including auto parts, passenger vehicles, garments, plastics, steel, household appliances, toys, textiles, furniture, footwear, leather products, paper and cardboard, motorcycles, aluminium, trailers, glassware, soaps, perfumes, and cosmetics. The impact will extend to several countries that lack a trade agreement with Mexico, such as India, South Korea, China, Thailand, and Indonesia.
Trade experts note that the proposed India–Mexico free trade agreement, which both countries are exploring, could play a crucial role in shielding Indian companies from such tariff shocks in the future. Negotiations on the pact, if concluded, are expected to provide long-term stability and improved market access for Indian exporters in the Mexican market.