Daijiworld Media Network - New Delhi
New Delhi, Dec 14: India has strongly objected to Mexico’s decision to impose higher import tariffs on goods from countries that do not have free trade agreements, warning that it may take “appropriate measures” to safeguard the interests of Indian exporters while continuing efforts to resolve the issue through dialogue.
Mexico’s Congress has approved a bill to raise tariffs on imports from India, China, Brazil and several other countries. The legislation, which will come into effect from January 1, 2026, was cleared by the Mexican Senate after earlier approval by the lower house.
The Indian government said the unilateral increase in tariffs, which could go up to 50 per cent on certain products, does not align with the spirit of cooperative economic engagement between the two countries or with transparency principles under the multilateral trading system. Official sources noted that unilateral hikes in MFN tariffs without prior consultation were not in keeping with established trade norms.
The bill proposes changes to 1,463 tariff lines across multiple sectors, including auto parts, light vehicles, plastics, toys, textiles, furniture, footwear, clothing, aluminium and glass. Revised duties are expected to range between 5 per cent and 50 per cent, with most products likely to face tariffs of around 35 per cent.
Apart from India, the higher tariffs will also impact China, South Korea, Thailand, Indonesia, Brazil, South Africa and the United Arab Emirates, with China expected to be the most affected. Although Mexico’s economy ministry had earlier deferred the proposal to August 2026 following objections from trade partners and domestic industry, it was reintroduced and fast-tracked earlier this month.
The Mexican government has maintained that the move is aimed at supporting local manufacturing and reducing trade imbalances, while also estimating that the revisions could generate around USD 3.8 billion in additional annual revenue. Observers, however, see the decision in a broader geopolitical context, linking it to US trade policy and Mexico’s ongoing USMCA review talks, as well as efforts to curb the transshipment of Chinese goods into the US market.
India has responded swiftly, with Commerce Secretary Rajesh Agrawal holding high-level discussions with Mexico’s Vice Minister of Economy Luis Rosendo. Further technical-level meetings are expected. The Indian Embassy in Mexico had earlier raised concerns in September, seeking special considerations to protect Indian exports.
According to official data, India was Mexico’s ninth-largest trading partner in 2023, with bilateral trade valued at USD 10.58 billion. Indian exports to Mexico amounted to USD 8.03 billion, while imports stood at USD 2.54 billion. Key Indian exports include automobiles and auto components, pharmaceuticals, engineering goods and chemicals, while crude oil is the main import from Mexico.
The government said the actual impact on exporters will depend on the role of Indian goods in Mexican supply chains and whether exemptions can be secured. A detailed product-wise notification from Mexico is still awaited. India, officials said, reserves the right to take suitable measures to protect its exporters while continuing constructive engagement to find a mutually acceptable solution.