By Admin 
After Mexico’s decision to increase the tariff on some Indian products by 50 percent, the Indian government has adopted a tough stance. The government has said that it reserves the right to take ‘necessary decisions’ to protect the interests of Indian exporters. A government official said on Saturday, ‘India reserves the right to take necessary steps to protect the interests of Indian exporters, and will continue to try to find a solution through negotiations.’
Beneficial solution for both countries
According to the Indian official, India had started talks with Mexico at the time of the initial proposal of this bill. The Commerce Department is in touch with the Mexican Economy Ministry to find a solution that is beneficial to both countries in line 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. There are plans for further talks also.
The Indian government said that unilaterally increasing the Most Favored National (MFN) tariff without prior consultation is against the security of cooperative economic relations between the two countries. It also does not match the principles of transparency and predictability of the multilateral trading system.
Tariff will be applicable on Asian countries from next year
This tariff decision of Mexico has been taken to protect its domestic industry and producers. These new tariffs will be applicable from January 1, 2026. This tariff will be imposed on products from countries with which Mexico does not have a free trade agreement (FTA), such as India, China, South Korea, Thailand and Indonesia.
Affected products include auto parts, light vehicles, clothing, plastics, steel, home appliances, toys, textiles, furniture, shoes, leather goods, paper, cardboard, motorcycles, aluminum, trailers, glass, soap, perfumes and cosmetics.
Big impact on Indian automobile exports
Mexico is India’s third largest car export market. From here India exports cars and parts worth about 1 billion dollars (about Rs 8,500 crore). Major companies like Volkswagen, Hyundai, Nissan and Maruti Suzuki will be affected. Tariff on cars will increase from 20 percent to 50 percent.
The Indian official said, ‘India values its partnership with Mexico and stands ready to work together to create a stable and balanced trade environment for the benefit of businesses and consumers of both countries.’
Preparation of new plan between the two countries
India and Mexico are also planning to start talks for a free trade agreement. Experts believe that due to FTA, Indian companies can get exemption from these tariffs. This decision has come at a time when there is a tariff war going on in global trade. This step by Mexico is to strengthen domestic industry and increase income, but it may increase prices.