India Presses Mexico Over Unilateral Tariffs as Talks on Trade Pact Begin
India Presses Mexico Over Unilateral Tariffs as Talks on Trade Pact Begin
India engages Mexico over unilateral tariff hikes as talks for a potential free-trade agreement begin, with Delhi seeking concessions to shield exporters.
India is engaging with Mexico over the latter's decision to unilaterally raise tariffs on a wide range of products, a move that targets countries without free trade agreements, including India. New Delhi says it reserves the right to take appropriate measures to safeguard its exporters as both nations explore mutually beneficial solutions. Mexico’s new duties, some of which reach up to 50%, have been in place since 2024 and apply to about 1,463 tariff lines. While Mexico argues the tariffs aim to boost manufacturing and reduce trade imbalances, Indian officials warn they could hurt its auto exports.
The Embassy of India in Mexico raised the issue with the Mexican Ministry of Economy on September 30, 2025, seeking special concessions to shield Indian exports from the new tariffs. Officials say India values its partnership with Mexico and stands ready to work toward a stable, balanced trade environment that benefits businesses and consumers in both countries. They also note that terms of reference to initiate formal negotiations for a free trade agreement are expected to be finalised soon.
Experts say a formal trade agreement could help insulate Indian companies from these tariffs, especially if future talks cover manufacturing and automotive sectors. Mexico's Senate approved the tariff measure on December 11, 2025, and it has since been cleared by both chambers of Congress. The tariffs were reportedly imposed under pressure from the United States to align with Washington on higher tariffs against China and to curb transshipment to the U.S. The Indian official emphasized that while disputes are being navigated, both sides are committed to a constructive dialogue and to broadening their economic partnership.
Bilateral talks are framed as a way to diversify supply chains and protect exporters while keeping trade flowing. If successful, the envisaged free trade agreement could reduce risk for Indian exporters and help smooth the way for closer cooperation on manufacturing and other areas. The emphasis remains on balancing rights to safeguard interests with the goal of a stable, predictable trade relationship.
Cover image source: India offers ‘final’ deal to U.S., but tariff removal is focus 🔗
