India Warns of Action as Mexico Hikes Import Tariffs by Up to 50%

India has strongly objected to Mexico’s decision to sharply raise import tariffs on goods originating from countries that do not have free trade agreements with it, cautioning that New Delhi may take “appropriate measures” to safeguard the interests of Indian exporters while continuing diplomatic engagement to resolve the issue.

The government said the unilateral tariff hike, which could raise duties to as high as 50 percent on select products, runs counter to the spirit of cooperative economic engagement between the two countries and undermines transparency within the multilateral trading system.

Officials noted that while Mexico’s move is not directed specifically at India, sudden increases in Most Favoured Nation tariffs without prior consultations are inconsistent with established global trade practices. The revised tariff structure is set to impact 1,463 product categories and will affect several Asian economies, including India, China, South Korea, Thailand and Indonesia. Most goods are expected to face duties of around 35 percent, with rates ranging between 5 and 50 percent.

Mexico’s Ministry of Economy unexpectedly reintroduced the tariff proposal on December 3, 2025, accelerating its implementation after initially deferring the move to August 2026 following objections from trading partners and domestic industry groups. Mexican authorities have cited the need to support local manufacturing and curb trade imbalances, though analysts link the decision to ongoing USMCA review negotiations and pressure to tighten trade channels linked to China.

India has responded swiftly through diplomatic channels. Commerce Secretary Rajesh Agrawal has held high-level discussions with Mexico’s Vice Minister of Economy Luis Rosendo, with further technical consultations expected. The Indian Embassy in Mexico had earlier raised concerns in September, seeking safeguards for Indian exporters.

The Department of Commerce is currently assessing the potential impact of the revised tariffs while engaging Mexican authorities to explore solutions within the framework of global trade rules. Officials said the extent of the impact will depend on the importance of Indian goods to Mexican supply chains and the scope for exemptions or cost pass-through.

India reiterated that it values its economic partnership with Mexico and remains committed to constructive dialogue, even as it reserves the right to act to protect domestic export interests.