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India in Talks with Mexico over Tariff Hike, Explores Free Trade Pact to Protect Exporters

Mexico imposes tariffs from 5% to 50% on 1,463 product lines, prompting India to seek exemptions and explore free trade agreement talks to protect exporters.

  • On Saturday, December 13, 2025, India's Department of Commerce said it is engaging Mexico to seek mutually beneficial solutions over unilateral tariff hikes while reserving the right to take appropriate measures to protect Indian exporters.
  • Mexico's Senate approved the tariff bill on December 11, 2025, and Mexico says it aims to boost manufacturing and cut trade imbalances with duties starting January 1, 2026.
  • India's exports to Mexico totalled $5.75 billion in 2024-25, and FIEO's Ajay Sahai said, `Such steep duties will erode our competitiveness and risk disrupting supply chains that have taken years to develop.`
  • India and Mexico are exploring free trade agreement talks, with Terms of Reference expected to be finalised soon; Commerce Secretary Rajesh Agrawal met Luis Rosendo, Mexico's Vice Minister of Economy, and the Embassy of India in Mexico raised the issue on September 30, 2025.
  • Officials warned the impact hinges on supply-chain integration and exemption outcomes, as Automotive Component Manufacturers Association said cost pressures will rise and exporters urged New Delhi to pursue FTAs with Chile, Peru and Mexico.
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The HinduThe Hindu
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India engaged with Mexico over 'unilateral' tariff hike

India engages with Mexico over unilateral tariff hikes, asserting rights to protect exporters while seeking mutually beneficial trade solutions.

·India
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Goodreturns broke the news in on Friday, December 12, 2025.
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