The Indian government is actively engaging with Mexican authorities following Mexico’s decision to unilaterally raise import tariffs on over 1,400 items. These new duties, ranging from 5% to 50%, target nations that do not have a Free Trade Agreement (FTA) with Mexico, including India, China, and South Korea. While New Delhi is seeking special concessions to shield its exporters, officials stated that India reserves the right to take appropriate measures to safeguard its national interests if a mutually beneficial solution is not reached.
Indian trade officials have been in contact with Mexico since the initial tabling of the tariff bill in September 2025. High-level meetings between India’s Commerce Secretary and Mexico’s Vice Minister of Economy have already occurred to explore solutions that align with global trade rules. Experts suggest these tariffs were largely influenced by pressure from the United States to align North American trade policy against China and prevent trans-shipment to the US market.
The impact on Indian exports—which stood at $5.75 billion in FY25—will depend on how critical Indian goods are to Mexican domestic supply chains. Key sectors at risk include automobiles, machinery, electronics, and chemicals. Consequently, both nations are looking to fast-track negotiations for an FTA to insulate businesses from these steep duties, with the terms of reference expected to be finalized soon.