India warns of action after Mexico raises tariffs on select Indian products

After Mexico approved a 50 per cent tariff hike on select products from India, New Delhi has warned of taking “appropriate measures” to safeguard its trade interests, a government official said on Saturday.

“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 said. According to PTI, India had engaged with Mexico when the bill proposing the tariff hike was initially tabled.

The Department of Commerce is in touch with Mexico’s Ministry of Economy to explore mutually beneficial solutions that align with global trade rules, the official added. A high-level meeting has already taken place between Commerce Secretary Rajesh Agrawal and Mexico’s Vice Minister of Economy, Luis Rosendo, with more discussions expected.

India flags concerns over unilateral tariff move

The Indian government said unilateral increases in MFN (most favoured nation) tariffs without prior consultations go against the spirit of cooperative economic engagement and the principles of transparency and predictability in the multilateral trading system. The new tariffs, aimed at protecting Mexico’s domestic industry, are set to come into force from January 1, 2026.

Mexico has imposed duties on a wide range of products, including auto parts, light vehicles, textiles, footwear, steel, aluminium, plastics, furniture, household appliances, toys, cosmetics, and leather goods. Countries without a trade agreement with Mexico, such as India, China, South Korea, Thailand, and Indonesia, will be affected.

India and Mexico are also exploring the possibility of launching negotiations for a free trade agreement, which experts say could help shield Indian exporters from such tariff shocks.