India Threatens Motion as Mexico Raises Import Tariffs by 50%

India has strongly objected to Mexico’s determination to impose larger import tariffs on items from nations with out free commerce agreements, warning that it might take “applicable measures” to guard its exporters whereas persevering with diplomatic efforts to resolve the problem by way of dialogue.

Mexico’s Congress has authorised a invoice searching for to boost tariffs on imports from India, China, Brazil and several other different nations. The laws, which can take impact on January 1, 2026, was cleared by Mexico’s Senate on Wednesday after receiving approval from the decrease home.

The Authorities of India mentioned the unilateral tariff enhance, which may see duties rise as excessive as 50% on sure merchandise, doesn’t align with “the spirit of cooperative financial engagement” between the 2 nations or with rules of transparency below the multilateral buying and selling system.

“Whereas we perceive that the motivation for this step by the Mexican authorities is unrelated to India, India believes that unilateral will increase in MFN tariffs, with out prior consultations, don’t align with the spirit of our cooperative financial engagement,” a supply mentioned.

The invoice proposes modifications to 1,463 tariff classes throughout greater than a dozen sectors, together with auto components, mild automobiles, plastics, toys, textiles, furnishings, footwear, clothes, aluminium and glass. The revised tariffs will vary from 5% to 50%, with most merchandise anticipated to face duties of round 35%.

Apart from India, the upper tariffs will have an effect on China, South Korea, Thailand, Indonesia, Brazil, South Africa and the United Arab Emirates. China is predicted to be essentially the most impacted nation.

Mexico’s Ministry of Economic system had initially deferred the proposal to August 2026 following issues raised by buying and selling companions and home business teams. Nonetheless, it was unexpectedly resubmitted and fast-tracked by way of the legislative course of earlier this month.

The Mexican authorities has mentioned the transfer is aimed toward supporting native manufacturing and lowering commerce imbalances. Officers have additionally estimated that the tariff revisions may generate extra income of about USD 3.8 billion yearly.

Observers, nevertheless, see a broader geopolitical context. The choice is extensively considered as aligning with US commerce coverage, significantly amid Mexico’s ongoing USMCA assessment negotiations with Washington and efforts to curb the transshipment of Chinese language items into the US market. Mexican diplomat Horacio Saavedra was quoted by native media as saying the measure displays shared issues between Mexico and the USA over commerce practices which have affected home industries, particularly textiles, clothes and sure manufacturing sectors.

India’s response has been swift. Commerce Secretary Rajesh Agrawal has held high-level discussions with Mexico’s Vice Minister of Economic system Luis Rosendo, with follow-up technical conferences anticipated. The Indian Embassy in Mexico had first raised issues on September 30, 2025, searching for particular concessions to guard Indian exports.

The Division of Commerce is analyzing the detailed implications of the tariff adjustments whereas participating with Mexican authorities to discover options in line with world commerce guidelines.

In line with official information, India was Mexico’s ninth-largest buying and selling accomplice in 2023, with bilateral commerce valued at USD 10.58 billion. Indian exports to Mexico stood at USD 8.03 billion, whereas imports had been valued at USD 2.54 billion. India’s key exports embody cars and auto parts, prescribed drugs, engineering items and chemical merchandise, whereas crude oil is the principal import from Mexico, together with gold jewelry, chemical compounds and telecommunications tools.

The supply mentioned the precise influence on Indian exporters will rely on the position Indian items play in Mexican provide chains and whether or not corporations can safe exemptions or go on larger prices to customers. An in depth product-wise notification is but to be issued.

“India reserves the suitable to take applicable measures to safeguard the pursuits of its exporters, whereas persevering with to pursue an answer by way of constructive dialogue,” the supply added.

Regardless of the dispute, India underlined that it values its partnership with Mexico and stays dedicated to working in the direction of a secure and balanced commerce relationship that advantages companies and customers in each nations.

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