Mexico has announced a sharp increase in import tariffs on goods coming from several Asian countries, including India and China, triggering concern among Indian exporters and the central government. The new tariffs, which go as high as 50 per cent, are scheduled to come into effect from January 1, 2026.
According to official sources, India has formally objected to Mexico’s decision and has already initiated talks with Mexican authorities to protect the interests of Indian exporters.
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India Raises Objection Over High Tariff Decision
As per a PTI report, India has strongly protested against Mexico’s move to raise import duties on a wide range of products. The government has also indicated that New Delhi reserves the right to take appropriate measures to safeguard Indian exporters if the issue is not resolved through dialogue.
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Officials said the decision was taken unilaterally by Mexico without prior consultation, which goes against the spirit of cooperative economic engagement and the principles of the multilateral trading system.
Which Countries Are Affected by Mexico’s Tariff Hike?
The 50 per cent tariff hike targets imports from countries that do not have a Free Trade Agreement (FTA) with Mexico. These include India, China, South Korea, Thailand and Indonesia. The proposal to raise tariffs was approved by both houses of the Mexican Congress on December 11, 2025, and will be implemented at the beginning of the new year.
Indian Exporters Express Serious Concerns
Indian exporters have expressed deep concern over Mexico’s move, especially those operating in key sectors such as automobiles and auto components, machinery, electrical and electronic goods, organic chemicals, pharmaceuticals, textiles and plastics. These sectors account for a large share of India’s exports to Mexico, and exporters fear that higher tariffs could reduce competitiveness, disrupt supply chains, and lead to financial losses.
A senior government official confirmed that India has been engaging with Mexico since the proposal was first introduced.
Trade Talks Underway
Commerce Secretary Rajesh Agrawal and Mexico’s Deputy Economy Minister Luis Rosendo have already held a high-level meeting on the issue. More discussions are expected in the coming weeks as both sides try to find a solution before the tariffs take effect. Despite ongoing talks, India has conveyed its discomfort over the sudden nature of the announcement.
Over Rs 52,000 Crore Worth of Exports at Risk
Trade data shows that India exported goods worth $5.75 billion (around Rs 52,077 crore) to Mexico during the 2024–25 financial year, while imports from Mexico stood at about $2.9 billion. If the high tariffs are implemented as planned, a significant portion of Indian exports could be impacted, affecting both manufacturers and exporters.
Why Has Mexico Increased Tariffs?
Mexico has stated that the primary aim of the tariff hike is to boost domestic manufacturing and reduce trade imbalances. Under this policy, import duties ranging from 5 per cent to 50 per cent will be imposed on nearly 1,463 product categories.
However, the official list of affected products has not yet been released.
As discussions continue, Indian exporters and policymakers remain hopeful that the issue can be resolved through diplomatic engagement before the new tariffs come into force on January 1, 2026.