Why Mexico’s 50% tariffs on Indian goods matter: Is India considering ‘appropriate measures’?

India warns on Mexico tariffs

After Mexico imposed a 50% tariff on Indian goods—mirroring similar U.S. actions—India has cautioned that it may take “appropriate measures to safeguard the interests of its exporters,” an official told PTI.

Earlier this week, the Mexican Senate approved a new tariff regime effective January 1, 2026, targeting imports from countries without a free trade agreement (FTA) with Mexico, including India, China, South Korea, Thailand, and Indonesia.

“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,” the official added.

India has already engaged with Mexican authorities to discuss ways to mitigate the impact of the tariffs. The Indian Embassy in Mexico raised the issue with Mexico’s Ministry of Economy on September 30, 2025, seeking special concessions to protect Indian exports.

“The Department of Commerce is engaged with Mexico’s Ministry of Economy to explore mutually beneficial solutions which align with global trade rules,” the official said.

Both nations are also preparing to formally launch negotiations for a free trade agreement. Terms of reference (ToR) to initiate the talks are expected to be finalised soon, which could help insulate Indian exporters from these tariffs.

A high-level meeting has already taken place between Commerce Secretary Rajesh Agrawal and Mexico’s Vice Minister of Economy Luis Rosendo, with follow-on technical discussions scheduled in the coming weeks.

“India reserves the right to take appropriate measures to safeguard the interests of Indian exporters, while continuing to pursue a solution through constructive dialogue,” the official added. He noted that the impact of these tariffs will depend on “the criticality of Indian exports to domestic supply chains in Mexico and [the] ability of Indian companies to secure exemptions or pass on the tariff cost to the Mexican consumers.”

The tariff hike follows warnings from the Trump administration about low-priced Chinese goods entering the U.S. via Mexico. Mexico framed the measure as a step to protect its domestic industry, preserve jobs, and correct distortions caused by cheap imports.

Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), said the move could affect sectors like automobiles, auto components, machinery, electrical and electronics, organic chemicals, pharmaceuticals, textiles, and plastics.

“Such steep duties will erode our competitiveness and risk disrupting supply chains that have taken years to develop,” Sahai told PTI.

India exported goods worth $8.9 billion to Mexico in 2024, while imports from Mexico stood at $2.9 billion.

The ongoing engagement between India and Mexico, coupled with potential FTA negotiations, aims to stabilise trade relations and protect the interests of Indian exporters in the face of rising tariffs.