India has begun discussions with Mexico to mitigate the affect of steep import tariffs accredited by the Latin American country on items from non-free substitute agreement partners, along side India, and to explore the chance of a preferential substitute agreement to safeguard bilateral substitute pursuits, ANI reported.Mexico has cleared tariff hikes of up to 50 per cent, efficient from 2026, on decide out imports from Asian countries comparable to India and China. The measure, framed as serve for home substitute and a correction of substitute imbalances, raises MFN import responsibilities within the 5–50 per cent vary on 1,455 tariff traces below the WTO framework, concentrated on countries without FTAs.In step with Indian estimates, exports worth spherical $2 billion would be affected, especially autos, two-wheelers, auto parts, textiles, iron and steel, plastics, leather-primarily based fully and sneakers.
The proposal used to be first floated in September 2025, deferred to August 2026 after concerns from non-FTA partners and substitute, and then resubmitted on December 3, 2025. It has since been cleared by every homes of Mexico’s Parliament and is staring at for Presidential Gazette notification.India–Mexico merchandise substitute stood at $8.74 billion in 2024, with Indian exports at $5.73 billion and imports at $3.01 billion, ensuing in a substitute surplus of $2.72 billion for India, per DGCI&S records.
Key Indian exports consist of mild autos ($0.88 billion), bikes ($0.39 billion), abominable metals ($0.76 billion), auto parts ($0.74 billion), mechanical machinery ($0.46 billion), textiles and clothing ($0.41 billion), chemical compounds ($0.43 billion) and pharmaceuticals ($0.38 billion).
Predominant imports from Mexico comprise impolite petroleum oils ($1.7 billion), smartphones ($0.27 billion) and gold ($0.17 billion).The executive acknowledged it has been closely assessing Mexico’s tariff revisions, partaking stakeholders and pursuing dialogue to guard exporters whereas guaranteeing a exact substitute environment for companies and patrons in every countries, ANI reported. The Indian Embassy had raised concerns with Mexico’s Ministry of Economy in behind September, which clarified that the measure used to be no longer directed in opposition to India and reaffirmed commitment to bilateral ties.“Thru exact engagement thereafter, a virtual assembly between Commerce Secretary Shri Rajesh Agrawal and Vice Minister Dr. Luis Rosendo used to be held on 2 December 2025, agreeing to pursue a substitute agreement to mitigate the affect promptly, with technical discussions initiated from 12 December 2025,” Agrawal acknowledged in a presentation.A latest exclaim by the Global Alternate Evaluate Initiative (GTRI) warned that Mexico’s tariff transfer can also severely disrupt Indian exports from January 1, 2026, noting that the policy aligns more closely with latest US protectionist measures and indicators serve for shut to-shoring and tighter North American present chains.
