Will take appropriate measures: India after Mexico's 50% tariff hike
What's the story
India has strongly protested Mexico's plan to hike import tariffs on certain products from the country, warning it of appropriate retaliatory measures. To note, Mexico's Congress approved a bill that could impose duties of up to 50% on select goods from countries without free trade agreements (FTAs) starting January 1. New Delhi said this move violates "the spirit of cooperative economic engagement" between the two nations and doesn't align with the principles of transparency in the multilateral trading system.
Impact scope
Tariff hike will impact 1,460 product categories
The proposed tariff hike by Mexico will cover 1,463 product categories and could impact several Asian economies, including India, China, South Korea, Thailand, Indonesia, and the United Arab Emirates. While the revised tariffs will range from 5% to 50%, most products might face duties of around 35%. Mexico's Economy Ministry earlier postponed the tariff proposal to August 2026 after pushback from trading partners and local industries. However, it was unexpectedly reintroduced and fast-tracked through legislation earlier this month, triggering tensions.
Diplomatic efforts
India's swift response to Mexico's tariff hike
India's Commerce Secretary Rajesh Agrawal has already held high-level discussions on the proposed tariff hike with Mexican Vice Minister of Economy Luis Rosendo. Further technical meetings are expected to take place soon, as both countries also look to initiate negotiations for a free trade agreement (FTA). To recall, the Indian Embassy in Mexico first raised concerns on September 30, 2025, seeking special concessions to shield Indian exports from the proposed tariffs.
Economic analysis
India reviews tariff revisions' implications
The Department of Commerce is reviewing the detailed implications of the tariff revisions while also engaging with Mexican authorities to work on a solution. The actual impact on Indian exports will depend on how critical Indian goods are to the Mexican supply chain and whether exemptions can be secured or if the costs can be passed on to consumers. Despite the dispute, India emphasized its commitment to working collaboratively toward a stable and balanced trade environment with Mexico.