India has sharply criticised Mexico’s sudden decision to impose steep tariff hikes on imports from countries without free trade agreements, signalling that it may retaliate even as it continues diplomatic negotiations. The government said Mexico’s move — affecting 1,463 product lines and raising duties up to 50 per cent — violates the norms of transparency and undermines the cooperative economic understanding between the two countries.
New Delhi stressed that unilateral increases in MFN tariffs, particularly without consultations, run counter to the principles of multilateral trade. Although Mexico has claimed the tariff escalation is aimed at supporting domestic industry and correcting trade imbalances, analysts point to a deeper geopolitical context. The acceleration of the tariff plan, previously deferred to August 2026, appears linked to Mexico’s negotiations under the USMCA review and pressure from Washington to restrict Chinese goods and block transhipment channels into the United States.
The tariff surge will hit several Asian countries, including India, China, South Korea, Thailand and Indonesia, with most products expected to face duties of around 35 per cent. For India, the consequences will depend on how essential its exports are within Mexican supply chains and whether exemptions or compensatory pricing are possible once the full notification is released.
India has already initiated diplomatic outreach. Commerce Secretary Rajesh Agrawal has held talks with Mexico’s Vice Minister of Economy, Luis Rosendo, while India’s embassy in Mexico has sought special concessions since late September. Technical consultations are now planned to assess the impact and explore limited carve-outs under global trading rules.
Officials said India will pursue dialogue but will not hesitate to take countermeasures to protect its exporters if required. New Delhi also underscored that despite the disagreement, it values its relationship with Mexico and aims to restore a predictable and balanced trade environment that supports the interests of both sides’ industries and consumers.
