India has lodged a strong objection to Mexico’s unexpected decision to raise import tariffs on a vast array of goods originating from countries, including India, that lack a Free Trade Agreement (FTA) with Mexico. New Delhi has warned of potential retaliatory measures to protect its exporters while maintaining diplomatic efforts to reverse the unilateral move.
Thank you for reading this post, don't forget to subscribe!The tariff revisions, which affect 1,463 product categories and will see duties climb as high as 50% on certain products, are scheduled to take effect on January 1, 2026.
India’s Stance and Diplomatic Action
The Government of India asserts that the unilateral tariff increase, which could see average duties on affected Indian goods rise significantly from existing levels, violates the “spirit of cooperative economic engagement” and the principles of transparency in the multilateral trading system.
- High-Level Dialogue: Commerce Secretary Rajesh Agrawal has already held high-level talks with Mexico’s Vice Minister of Economy, Luis Rosendo, with technical follow-up meetings planned. The Indian Embassy in Mexico first raised concerns in September 2025, seeking special concessions.
- Warning of Counter-Measures: India has explicitly stated it “reserves the right to take appropriate measures to safeguard the interests of Indian exporters,” though it remains committed to pursuing a solution through constructive dialogue.
- FTA Push: Analysts and industry bodies are urging India and Mexico to fast-track negotiations for a Free Trade Agreement or Preferential Trade Agreement to insulate Indian exports from these duties.
Key Sectors Impacted
The tariff hike affects multiple Asian economies, including India, China, South Korea, and Indonesia. For India, the impact is expected to be severe in sectors that form the bulk of its exports to Mexico:
The Underlying Motivation
While the Mexican government cites strengthening local production and reducing trade imbalances as the primary rationale, observers believe the move is intrinsically linked to U.S. pressure.
The tariff policy is seen as an attempt by Mexico to align with U.S. trade strategy ahead of the USMCA review negotiations. The goal is to curb the flow and transshipment of Asian goods, particularly from China, into the North American market. India is thus a significant partner caught in the crosshairs of global trade tensions.
