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India and Mexico wish to begin negotiations for a free commerce settlement because the latter hiked tariffs on Indian items to 50%, which is predicted to impression auto exports.
Mexico introduced tariffs on nations it doesn’t a commerce take care of, together with India. (Reuters/File)
After Mexico unilaterally imposed 50% tariffs on Indian items, mirroring the same transfer by the US, India has cautioned that it could take applicable steps to guard the pursuits of its exporters, in response to an official.
Earlier this week, Mexico accredited a brand new tariff regime that raises import duties on items coming from nations with which it doesn’t have a free commerce settlement (FTA), together with India, China, South Korea, Thailand and Indonesia. The Senate cleared the measures for implementation from January 1, 2026.
An official informed information company PTI that India is engaged with Mexico to search out mutually useful options after its determination to boost tariffs, although New Delhi reserves the proper to take applicable measures to safeguard the pursuits of its exporters.
“India values its partnership with Mexico and stands able to work collaboratively towards a steady and balanced commerce surroundings that advantages companies and shoppers in each nations,” the official added.
India-Mexico FTA Quickly?
The Embassy of India in Mexico additionally raised the problem with Mexico’s Ministry of Economic system on September 30, 2025, itself, in search of particular concessions to defend Indian exports from the brand new tariffs. “The Division of Commerce is engaged with Mexico’s Ministry of Economic system to discover mutually useful options which align with world commerce guidelines,” the official mentioned.
Moreover, each nations wish to begin negotiations for a free commerce settlement, and phrases of reference (ToR) to provoke the talks formally are anticipated to be finalised quickly. That is anticipated to assist insulate Indian corporations from these tariffs.
A high-level assembly on this regard between Commerce Secretary Rajesh Agrawal and Mexico’s Vice Minister of Economic system Luis Rosendo has already taken place and observe on technical conferences are anticipated quickly.
“India reserves the proper to take applicable measures to safeguard the pursuits of Indian exporters, whereas persevering with to pursue an answer by constructive dialogue,” the official informed PTI, including that the precise impression of those tariffs on Indian exports will rely upon the criticality of Indian exports to home provide chains in Mexico and skill of Indian corporations to safe exemptions or cross on the tariff price to the Mexican shoppers.
Why Has Mexico Imposed Tariffs?
Mexico’s tariffs got here after the Trump administration warned about low-priced Chinese language items getting into the US by Mexican channels. Mexico has additionally framed the tariff improve as a step to guard home trade and employment and as a approach to appropriate distortions brought on by low cost imports.
Federation of Indian Export Organisations (FIEO) Director Normal Ajay Sahai mentioned that Mexico’s determination is a matter of concern, significantly for sectors like vehicles and auto parts, equipment, electrical and electronics, natural 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,” he mentioned.
India exported items price $8.9 billion to Mexico in 2024, whereas imports stood at $2.9 billion.
(with company inputs)
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