7 months ago
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India is engaged with Mexico implicit the South American nation's determination to unilaterally rise tariffs connected a fig of products to find mutually beneficial solutions, adjacent arsenic New Delhi reserves the close to instrumentality ‘appropriate measures’ to safeguard the interests of its exporters, an authoritative said connected Saturday (December 13, 2025).
These duties are announced against countries that bash not person free commercialized agreements with Mexico, including India, China, South Korea, Thailand and Indonesia.
The authoritative said that India, successful fact, was engaged with Mexico during the archetypal tabling of a measure successful this regard.
The Embassy of India successful Mexico raised the contented with the Ministry of Economy connected September 30, 2025, itself, seeking peculiar concessions to shield Indian exports from the caller tariffs.
"India values its concern with Mexico and stands acceptable to enactment collaboratively toward a unchangeable and balanced commercialized situation that benefits businesses and consumers successful some countries," the authoritative added.
Further, some the countries are looking to commencement negotiations for a escaped commercialized agreement, and Terms of Reference (ToR) to initiate the talks formally are expected to beryllium finalised soon.
Experts said that the commercialized statement volition assistance insulate Indian companies from these tariffs, which were imposed nether unit from the U.S. to align with America connected expanding tariffs against China and forestall trans-shippment to America.
Mexico's Senate has approved a caller tariff measure connected December 11, 2025, and it has since been cleared by some chambers of Congress. It is aimed astatine boosting manufacturing and reducing commercialized imbalances.
Under the decision, Mexico volition enforce steep import tariffs - ranging from astir 5% to arsenic precocious arsenic 50% connected a wide scope of goods (about 1,463 tariff lines) from countries that bash not person escaped commercialized agreements with Mexico, including India, China, South Korea, Thailand and Indonesia.
However, the database of items covered is yet to beryllium officially notified. The higher duties volition instrumentality effect connected January 1, 2026.
"The Department of Commerce is engaged with Mexico's Ministry of Economy to research mutually beneficial solutions which align with planetary commercialized rules," the authoritative said.
A high-level gathering successful this respect betwixt Commerce Secretary Rajesh Agrawal and Mexico's Vice Minister of Economy Luis Rosendo has already taken spot and travel connected method meetings are expected soon.
"India reserves the close to instrumentality due measures to safeguard the interests of Indian exporters, portion continuing to prosecute a solution done constructive dialogue," the authoritative added.
Tariff hike alarms Indian exporters
The authorities authoritative further said that the existent interaction connected Indian exports volition beryllium connected the criticality of Indian exports to home proviso chains successful Mexico and quality of Indian companies to unafraid exemptions oregon walk connected the tariff outgo to the Mexican consumers.
India believes that unilateral increases successful MFN (Most Favoured Nation) tariffs, without anterior consultations, bash not align with the tone of our cooperative economical engagement oregon with the principles of predictability and transparency underpinning the multilateral trading system.
The authoritative besides said the authorities is presently examining the details and implications of Mexico's tariff revisions and remains engaged with each stakeholders to show the evolving situation.
Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said that Mexico's determination is simply a substance of concern, peculiarly for sectors similar automobiles and car components, machinery, electrical and electronics, integrated chemicals, pharmaceuticals, textiles and plastics.
"Such steep duties volition erode our competitiveness and hazard disrupting proviso chains that person taken years to develop," Mr. Sahai said, adding that this improvement besides underlines the small urgency for India and Mexico to fast-track a broad commercialized agreement.
Domestic car constituent manufacturers volition look enhanced outgo pressures with Mexico hiking duties connected Indian imports, according to manufacture assemblage Automotive Component Manufacturers Association (ACMA).
India's exports to Mexico stood astatine $5.75 cardinal successful 2024-25, portion imports were $2.9 billion.
