As India reels amid steep tariff hike by Mexico, ranging as much as 50 per cent, an official mentioned New Delhi is actively participating with Mexican authorities over what it views as a “unilateral” transfer to lift duties on a variety of merchandise.The discussions, the official mentioned, are aimed toward discovering options helpful to each international locations, whereas maintaining open the choice of defending Indian exporters’ pursuits. The feedback have been made to PTI.
The tariff will increase apply to international locations that would not have free commerce agreements with Mexico, together with India, China, South Korea, Thailand and Indonesia. In response to the official, India had raised issues even when the preliminary invoice was launched.India’s Embassy in Mexico approached the Mexican Ministry of Financial system on September 30, searching for particular consideration to defend Indian exports from the revised tariff construction.“India values its partnership with Mexico and stands able to work collaboratively towards a secure and balanced commerce atmosphere that advantages companies and shoppers in each international locations,” the official mentioned.India and Mexico are additionally making ready to start discussions on a free commerce settlement, with formal negotiation parameters anticipated to be finalised shortly. Analysts imagine such an settlement would assist insulate Indian firms from the brand new duties, which have been carried out underneath American stress to align Mexican tariffs with US measures towards China and to curb oblique shipments into the American market.The Mexican Senate accredited the tariff laws on December 11, with ratification by each chambers of Congress. The transfer is meant to strengthen home manufacturing and scale back commerce imbalances.Below the choice, import duties starting from 5 to 50 per cent will apply to round 1,463 product classes from international locations with out free commerce agreements with Mexico, together with India. The detailed product checklist has not but been revealed. The revised tariffs will come into impact from January 1, 2026.“The Division of Commerce is engaged with Mexico’s Ministry of Financial system to discover mutually helpful options which align with international commerce guidelines,” the official mentioned.A senior-level dialogue has already taken place between Commerce Secretary Rajesh Agrawal and Mexican Vice Minister of Financial system Luis Rosendo, with additional technical-level conferences deliberate. “India reserves the fitting to take acceptable measures to safeguard the pursuits of Indian exporters, whereas persevering with to pursue an answer via constructive dialogue,” the official added.The official famous that the precise influence on Indian exports would rely on how important these items are to Mexican provide chains, in addition to the power of Indian firms to safe exemptions or go on prices to Mexican shoppers.India, the official mentioned, views unilateral MFN tariff will increase with out prior session as inconsistent with the ideas of predictability and transparency underpinning cooperative financial engagement and the multilateral buying and selling system. The federal government is constant its evaluation of Mexico’s tariff modifications whereas remaining in shut contact with all stakeholders.Trade our bodies have voiced concern over the transfer. FIEO Director Basic Ajay Sahai warned that the choice might have an effect on sectors equivalent to cars, equipment, electrical items, chemical substances, prescription drugs, textiles and plastics.“Such steep duties will erode our competitiveness and threat disrupting provide chains which have taken years to develop,” Sahai mentioned, in response to PTI, calling for sooner progress on a complete commerce settlement.ACMA has additionally indicated that Indian auto part producers might face greater value pressures because of the elevated duties on exports to Mexico.India’s exports to Mexico stood at $5.75 billion in 2024–25, whereas imports from Mexico have been valued at $2.9 billion.
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