Following Mexico’s decision to hike tariffs by 50% on select Indian products, the government of India has warned it will take “appropriate measures” to protect its exporters. An official told PTI, “India reserves the right to take appropriate measures to safeguard the interests of Indian exporters, while continuing to pursue a solution through constructive dialogue.”
Both countries are also reportedly exploring negotiations for a free trade agreement (FTA).
Engagement with Mexican authorities
India has been in talks with Mexico since the initial tabling of the bill. “The Department of Commerce is engaged with Mexico's Ministry of Economy to explore mutually beneficial solutions which align with global trade rules,” the official said.
A high-level meeting between Commerce Secretary Rajesh Agrawal and Mexico's Vice Minister of Economy Luis Rosendo has already taken place, with follow-up discussions planned to resolve the issue.
Tariffs set to take effect in 2026
The tariffs, aimed at protecting Mexican industries, will be effective from January 1, 2026.
The government noted that “unilateral increases in MFN tariffs, without prior consultations, do not align with the spirit of our cooperative economic engagement or with the principles of predictability and transparency underpinning the multilateral trading system.”
According to El Universal, the tariffs will affect goods including auto parts, light cars, clothing, plastics, steel, household appliances, toys, textiles, furniture, footwear, leather goods, paper, cardboard, motorcycles, aluminium, trailers, glass, soaps, perfumes, and cosmetics. Countries without a trade deal with Mexico, such as India, South Korea, China, Thailand, and Indonesia, are expected to be impacted.
The official added, “India values its partnership with Mexico and stands ready to work collaboratively toward a stable and balanced trade environment that benefits businesses and consumers in both countries.”
