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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After America, now Mexico has also given a big blow to India. Mexico’s Parliament has approved a new bill, under which heavy tariffs ranging from 5% to 50% will be imposed on goods imported from many countries including India, China, Brazil. This law will apply to countries with which Mexico does not have a free trade agreement (FTA)—which includes India. This new fee structure will be applicable from January 1, 2026.

Mexico Parliament passes high-tariff bill
Both houses of the Mexican Parliament – the Senate and the lower house – have approved this bill. President Claudia Sheinbaum introduced it in September, proposing to increase import duties on 1,463 products.

Which products will be expensive?
The areas where fees have been increased in this law include:

• vehicle parts
• light vehicle
• plastic products
• toys
• clothing and apparel
• Furniture
• Shoes
• ready-made clothes
• aluminum products
• glassware

Tariffs ranging from 5% to 50% can be imposed on all these categories.

Why impact on India?
India does not have any FTA with Mexico, so this law will directly apply to Indian exports. India was Mexico’s 9th largest trading partner in the year 2023, and the total bilateral trade between the two countries stood at $10.58 billion. This means that many products sent from India will now become costlier in Mexico, which may affect the competitiveness of Indian companies.

Biggest impact on China, but India also affected
The government estimates that this move will generate additional revenue of $3.8 billion for Mexico every year. Although the biggest impact will be on China’s exports, India is also among the major countries which will have to face the brunt of this new law.

America had also taken a similar step
Earlier in August, America had increased the customs duty on many products imported from India to 50%. Now after Mexico’s decision, the pressure on Indian trade may increase further.