trade talk
After America, Mexico has also imposed 50 percent tariff on India, regarding which India is in talks with Mexico. Mexico has announced unilateral tariffs not only on India but also on many countries in Asia. These tariffs have been announced against countries that do not have free trade agreements with Mexico, including India, China, South Korea, Thailand and Indonesia.
According to the ET report, India values its partnership with Mexico and is ready to work together towards a stable and balanced trade environment that benefits businesses and consumers of both countries. Moreover, both the countries are trying to start negotiations for a free trade agreement and the terms of reference for starting formal talks are expected to be finalized soon.
Experts say that this trade agreement will help in protecting Indian companies from these duties, which were imposed under US pressure to increase tariffs against China and stop the movement of goods to America. Mexico’s Senate approved a new tariff measure on December 11, 2025, which was later passed by both houses of Parliament. Its objective is to promote manufacturing and reduce trade deficit. Under this decision, Mexico will impose heavy import duties on goods (about 1,463 tariff items) coming from countries with which Mexico does not have a free trade agreement. This fee can range from about 5 percent to 50 percent.
When will the rates be applicable?
However, the list of items included in it has not been officially released yet. These increased charges will be applicable from January 1, 2026. An official said the Commerce Department is working with Mexico’s Economy Ministry to find a solution that is beneficial to both parties, in accordance with global trade rules. In this regard, a high level meeting has been held between Commerce Secretary Rajesh Aggarwal and Mexico’s Deputy Economy Minister Luis Rosendo and technical level meetings are expected to take place soon.
Federation of Indian Export Organizations (FIEO) Director General Ajay Sahay said that Mexico’s decision is a matter of concern, especially for sectors like automobiles and auto components, machinery, electrical and electronics, organic chemicals, medicines, textiles and plastics. Sahay said that such high tariffs will weaken our competitiveness and threaten to damage supply chains that have taken years to develop. He further said that this situation also shows the need to quickly conclude a comprehensive trade agreement between India and Mexico. According to industry organization ACMA, Mexico’s increase in duty on Indian imports will increase cost pressure on domestic auto parts manufacturing companies. India’s exports to Mexico in 2024-25 were US $ 5.75 billion, while imports were US $ 2.9 billion.
Also read- Mexico Tariff on India: Mexico’s mistake to impose tariff on India! He will have to pay a big price