India for Constructive Dialogue with Mexico over 50% Tariffs

Spread love

India reserves the right to take appropriate measures following Mexico imposing 50% tariffs, said sources.

By TRH Foreign Affairs Desk

New Delhi, December 13, 2025 — India continues to hold consultations with Mexico. India is also holding discussions with stake holders after Mexico imposed 50% tariffs on India. The Mexican decision has alarmed India as it aligns with the US tariffs of 50% against Indian exports. Mexico is also a large market for India’s auto exports.

Mexico approved a major increase in its MFN import tariff regime, covering imports from countries without a free trade agreement (FTA) with Mexico. The proposal was initially introduced in September 2025, but later deferred to August 2026 due to concerns raised by non-FTA partners (including India) and by Mexican industry groups.

Despite the deferral, the Ministry of Economy unexpectedly resubmitted the proposal on December 3, 2025, accelerating the legislative process.

The rationale cited by the Mexican government includes supporting local production and reducing trade imbalances. Observers have also cited requirements around Mexico’s negotiations with the US for the USMCA review, and pressure from the US to align with the US on increasing tariffs against China and prevent trans-shippment to US.

“The measure amends tariffs across 1,463 tariff lines and affects partners including India, China, South Korea, Thailand, Indonesia, and several others. The revised tariffs will range from 5% to 50%, with most products expected to face duties around 35%,” diplomatic sources said. However, as the detailed list of items covered is yet to be officially notified, any comment on the quantum of impact will be premature, they added.

“Moreover, the actual impact on Indian exports will depend on the criticality of Indian exports to domestic supply chains in Mexico and ability of Indian companies to secure exemptions or pass on the tariff cost to the Mexican consumers,” said a senior official.

India has taken note of the recent decision by Mexico to raise its MFN tariff rates on selected imports, sources said, adding that “while we understand that the motivation for this step by the Mexican government is un-related to India, India believes that unilateral increases in MFN tariffs, without prior consultations, do not align with the spirit of our cooperative economic engagement.”

Also, sources said, India is concerned that the decision will affect the principles of predictability and transparency underpinning the multilateral trading system.

“Government is currently examining the details and implications of Mexico’s tariff revisions and remains engaged with all stakeholders to monitor the evolving situation,” sources said.

Following the initial tabling of the Bill, the Embassy of India in Mexico raised the issue with the Ministry of Economy on 30 September 2025, seeking special concessions to shield Indian exports from the new tariffs, added the sources. They also stated that “Department of Commerce is engaged with Mexico’s Ministry of Economy to explore mutually beneficial solutions which align with global trade rules.”

“A high level meeting in this regard between Commerce Secretary Rajesh Agrawal and Mexico’s Vice Minister of Economy Luis Rosendo has already taken place and follow on technical meetings are expected soon,” added the sources.

They also stressed that “India reserves the right to take appropriate measures to safeguard the interests of Indian exporters, while continuing to pursue a solution through constructive dialogue.”

“India values its partnership with Mexico and stands ready to work collaboratively toward a stable and balanced trade environment that benefits businesses and consumers in both countries,” they said.