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.

After America, Mexico has decided to impose 50 percent tariff on some selected goods imported from India. Now India has reacted to this step of Mexico. An official said on Saturday (December 13, 2025) that after this decision of Mexico, New Delhi has warned to take appropriate steps to protect its interests. He said, ‘India reserves the right to take appropriate steps to protect the interests of the country’s exporters while seeking a solution through dialogue.’

According to a PTI report, the official said that India was in touch with Mexico on this matter since the initial phase of the introduction of the bill. He said, ‘India’s Commerce Department is in talks with the Finance Ministry of Mexico to find a mutually beneficial solution in line with global trade rules.’

High level talks between India and Mexico

A high-level meeting has already taken place between India’s Commerce Secretary Rajesh Aggarwal and Mexico’s Deputy Finance Minister Luis Rosendo regarding this matter and follow-up meetings are also expected after this. The Government has said that a unilateral increase in MFN tariffs without any prior negotiation is neither consistent with the spirit of our cooperative economic relations nor with the principles of predictability and transparency of the multilateral trading system.

These tariffs, which are being imposed by Mexico to protect the national industry and producers, will come into effect from the beginning of next year i.e. January 1, 2026. The official said, ‘India attaches great importance to its partnership with Mexico and is ready to work collaboratively for a stable and balanced trade environment in the interest of businesses and consumers of both countries.’

Mexico imposed tariff on which Indian goods?

According to Mexico’s daily newspaper El Universal, Mexico has imposed tariffs on products like auto parts, light cars, clothing, plastics, steel, home appliances, toys, furniture, shoes, leather goods, paper, cardboard, motorcycles, aluminum, trailers, glass, soap, perfumes and cosmetics imported from India.

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Prices will increase on goods supplied to North America

India some products Mexico Supplies to North America through. After the announcement of tariff, the cost of these goods may increase, the effect of which will be visible on the market as well. In recent times, India and Mexico There has been a significant increase in trade between. According to government data, from India in 2020 Mexico The exports in 2015 were 4.25 billion dollars, which will increase to 8.98 billion dollars in 2024.

Also in 2024 Mexico Imports from India remained at 2.74 billion dollars. Bilateral trade between the two countries in 2024 11.7 billion It was dollars. covid After this, there was a decline in trade between the two countries, but then rapid progress was seen.

On December 10, Mexico’s Senate passed a major bill, in which there is a provision to impose up to 50% tariff on Asian countries like China, India, South Korea, Thailand and Indonesia. This is exactly like Trump’s tariff, which will come into effect from 2026. Mexico has taken this step by adopting a protectionist policy like the administration of US President Donald Trump, where Trump has also imposed heavy tariffs on Asian countries.

More impact on non-FTA countries

Tariff will be imposed or increased on about 1400 products of Asian countries. Automobiles, auto parts, clothes, footwear, plastics, steel, furniture, toys, aluminum and glass related goods exported to Mexico will be expensive. Countries which do not have a Free Trade Agreement (FTA) with Mexico will be more affected.

This bill was passed rapidly in the Mexican Parliament. The Lower House approved it on December 10, and the Senate passed the bill by a 76–5 vote. President Sheinbaum had made this proposal in September 2025 itself and she is going to sign it soon.

Mexico trying to please America

Donald Trump has put pressure on Mexico to distance itself from China. The US-Mexico-Canada Trade Deal (USMCA) is due to be reviewed in 2026, and the US is considering Mexico as a ‘backdoor’ entry point for China. Experts are saying this is an attempt to please Washington. Like America, Mexico is also moving towards protectionism. This will strengthen Mexico’s local factories and more than 3 lakh jobs can be saved. But imported parts will be expensive, which may increase inflation. Mexican business groups have opposed this.

India-Mexico trade to be worth $11.7 billion in 2024

According to reports, trade between India and Mexico has increased in the last few years. In 2022, trade between the two countries was worth $11.4 billion, however, there was a decline in 2023 and it was $10.6 billion. In 2024, trade jumped to $11.7 billion, which is an all-time high. India’s trade surplus with Mexico is also very high. In 2024, India exported goods worth $8.9 billion to Mexico, while imported goods worth only $2.8 billion.