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, 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.

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.

India’s GDP Growth: The Indian economy is growing at a fast pace and the International Monetary Fund (IMF) has estimated the GDP growth rate to be 6.6 percent for the financial year 2025-26. In its report, IMF has said that GST reforms are expected to help India counter the impact of 50 percent higher tariff imposed by the US.

The IMF issued the statement after its Board of Executive Directors completed its annual assessment of India. It was said that India’s economy is continuously performing better. After a growth rate of 6.5 percent in FY 2024-25, real GDP grew at 7.8 percent in the first quarter of FY 2025-26.

Ability to maintain economic growth

IMF says that India’s ambition to become a developed economy in the future can be strengthened by comprehensive structural reforms. This will pave the way for long-term high growth rates. IMF also said that despite external challenges, domestic conditions remain favorable, due to which economic growth is expected to remain strong.

According to the IMF, even if the US’s 50 percent tariff continues for a long time, real GDP growth could still be 6.6 percent in fiscal year 2025-26. However, it is expected to decline to 6.2 percent in the financial year 2026-27.

Positive impact of GST reforms

The IMF believes that the GST reforms and the resulting reduction in tariff rates will help mitigate the negative impact of US tariffs. The US has imposed a 50 percent tariff on India, which also includes a 25 percent duty on energy imports from Russia.

Future risks and opportunities

The IMF warned that there are many risks to the economic outlook in the near future.

positive side:

• Implementation of new trade agreements can boost exports, private investment and employment.
• Rapid implementation of structural reforms will provide additional support to the growth rate.

negative side:

• Financial conditions may become tighter as global economic disruption increases.
• Prices of raw materials may increase.
• There may be a negative impact on trade, foreign direct investment (FDI) and economic growth.

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Trump Tariffs: US President Donald Trump, who has imposed tariffs that have rattled the world this year, is increasingly defending his actions. Amidst severe criticism, he has repeatedly claimed that his tariff policy is not only strengthening the American economy, but has also proved helpful in preventing conflict at the international level. Now Trump has made another sensational claim saying that he has stopped eight wars so far, out of which five were stopped due to the fear of tariffs.

Trump’s new claim

Trump said that due to tariff, not only billions of dollars have come into the US treasury, but it has also become an effective weapon of international diplomacy. Posting on Truth Social on Sunday, he wrote that a large amount of money and investment from abroad has returned to America due to threats of tariffs. According to him, due to these warnings, five out of eight possible wars in the world could be prevented.

Trump has often claimed that he has defused many conflicts globally, including the ceasefire between India and Pakistan after the Pahalgam terror attack. He also said that at that time he had played a role in reducing tensions by threatening to impose 350% tariff.

Contribution of tariffs to the US economy

President Trump says that tariffs are very important for the American economy and national security. According to him, in the last nine months alone the US stock market has reached all-time highs nine times.

However, he has been criticized worldwide regarding his tariff policy. Critics say that this has increased instability in global trade. India has also been imposed high tariffs of up to 50% by the US, out of which 25% tariffs have been imposed citing India’s purchase of crude oil from Russia.

Impact on India and government’s response

US high tariffs have had a direct impact on India’s jewellery, shrimp exports, and many other items. However, the Indian government has announced separate aid packages to protect the interests of the affected areas. Along with this, India has also intensified work towards finding alternatives to America for import and export while improving economic relations with China.

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US President Donald Trump has once again given himself credit for stopping the war between India and Pakistan. He has done this many times, but this time he has made a new claim. He says that he had threatened both the countries to impose 350 percent tariff and stop trade, after which both the countries got scared. Trump also said that after stopping the fighting, Pakistani Prime Minister Shahbaz Sharif called him and thanked him and said that he had saved the lives of millions of people.

Trump made these claims while addressing the US-Saudi Investment Forum on Wednesday (November 19, 2025). He said, ‘I am good at resolving disputes and I have always done so – I have done a very good job in these matters over the years.’

Donald Trump said, ‘India and Pakistan – they were going to attack each other’s nuclear weapons. I said okay, you can, but I will impose 350-350 percent tariff on both the countries and America will not trade with you anymore. Trump said that both countries appealed to him not to do so. Trump said, ‘He said- No, no you can’t do that. I said- I am going to do it. Come back to me and I will remove it. I will not let you use nuclear weapons on each other, kill millions of people and send nuclear dust all the way to Los Angeles.

Trump said, ‘They said- we don’t like it. I said, I don’t care whether you like it or not. Trump claimed that he had threatened to impose 350 percent tariffs and end trade to stop the war. He said no other president would ever do this. Joe Biden may not even know which countries we are talking about. They don’t know anything. Trump laughed loudly while saying this.

Trump said that Pakistan Prime Minister Shahbaz Sharif called him and thanked him and said that the American President has saved the lives of millions of people. Shahbaz Sharif told Trump that you don’t even know these people, yet they saved the lives of so many people.

In retaliation to the Pahalgam terrorist attack in April, on May 7, India had launched Operation Sindoor to destroy the terrorist bases in Pakistan, in which 9 terrorist camps were badly destroyed. Pakistan was badly shocked by this action of India and it tried unsuccessfully to attack military bases in many cities of India. After this, tension between the two countries increased and both sides attacked each other, on May 10, India and Pakistan agreed on ceasefire.

US President Donald Trump said on Tuesday (11 November 2025) that his administration is very close to finalizing a Fair Trade Deal with India. He indicated that the high import tariffs imposed on India can be reduced in the coming times.

In response to questions from journalists, Trump said, “Tariffs on India are very high because of Russian oil, but now India has significantly reduced the purchase of oil from Russia.” We will reduce the tariff at the earliest appropriate time. His statement has come at a time when America had recently increased the duty on some products coming from India from 25% to 50%. The reason for this was said to be India’s ongoing oil import from Russia, whereas India has always been saying that it takes decisions based on its energy security interests.

#WATCH US President Donald Trump says, “We’re making a deal with India, a much different deal than we had in the past. So right now, they don’t love me, but they’ll love us again. We’re getting a fair deal, just a fair trade deal. We had pretty unfair trade deals…But we’re… pic.twitter.com/r93gmaU7xk

— ANI (@ANI) November 10, 2025

Trump’s comment on oil trade between India and Russia
Trump claimed that India has now significantly reduced the purchase of oil from Russia. However, the Government of India had already made it clear that its policy is based on energy procurement in line with national interests. Earlier, Trump had also said that he had received assurance from Prime Minister Narendra Modi to stop oil trade with Russia, but India had not confirmed any such conversation.

New chapter towards fair trade
Trump said in his statement that in the past decades, trade agreements between America and India have always been one-sided, due to which American companies suffered losses. “Now his administration is preparing an agreement that will equally balance the interests of both countries.” He said, “We are making a new agreement with India which will be completely different from before. This will prove beneficial for both the countries.”

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The US Supreme Court may give its verdict on Thursday (November 6, 2025) amid the turmoil in the global business world with US President Donald Trump’s announcement of tariffs. In Wednesday’s hearing, judges raised questions about Trump’s legal authority over the tariffs. This stance of the court is not seen in support of Trump. On the other hand, the eyes of the whole world are fixed on this decision.

On November 5, the last hearing in this case started in the Supreme Court, in which most of the judges raised questions on Trump’s decision. Earlier, a lower federal court had ruled regarding the tariffs that Trump did not have the legal authority to impose tariffs on imports from many of America’s trading partners and to impose fentanyl tariffs on products from Canada, China and Mexico. After the lower court’s decision, Trump approached the Supreme Court.

Trump’s tariff policy has been challenged by small businessmen and a group of 12 states and three lawsuits have been filed regarding it. The basis in the petitions has been that before imposing the tariff, Trump did not think about its impact nor did he try to understand the situation. It has been said in the petition that Trump neither held any official meeting with the administration nor was any report prepared in this regard. Trump has to prove in the Supreme Court whether the decisions taken by him are logical and constitutionally correct or not.

According to the report of news agency IANS, the debate regarding tariff went on in the court for more than two and a half hours. The court raised questions on the Trump government’s decision on tariffs. Justice Sonia Sotomayor said, ‘You say that tariffs are not taxes, but in reality they are taxes. They are earning money, revenue from American citizens.

On this, Solicitor General John Sawyer said, ‘I cannot say much about this, it is a regulatory tariff, not a tax. It is true that tariffs increase revenue and this is only accidental. Apart from this, Justice John Roberts said, ‘Correct me if I am not right, but this argument is being given for the power to impose tariffs on any product of any country, in any quantity, for any period.’

Following Justice Roberts’ comments, US Solicitor General D. John Sawyer argued that IEEPA allows the President to regulate imports during a state of emergency. Justice Amy Coney Barrett did not agree with the arguments of the US Solicitor General. He asked Sawyer, ‘Can you cite any other place in the Code or any other time in history where the phrase regulating imports was used to give authority to impose a tariff?’

Additionally, Justice Barrett said that if Congress wanted to approve any limits on emergency tariffs in the future, it would need a two-thirds majority to override the President’s veto. Justice Barrett asked, ‘If Congress says, hey, we don’t like this, this gives the President too much authority under IEEPA, then he’s going to have a very difficult time taking that tariff power away from IEEPA, right? Although the court has not yet announced its final decision in the matter, the US Supreme Court has raised questions on the US President’s decision on tariffs.

India and America have prepared a defense framework for the coming 10 years. This agreement was signed between Defense Minister Rajnath Singh and US Defense Secretary Pete Hegseth during the ASEAN Defense Ministers’ meeting held in Kuala Lumpur. This agreement is an extension of the old defense agreement signed in 2015. Its main objective is to increase technical cooperation between the two countries, strengthen military coordination and maintain stability in the Indo-Pacific region.

Through the Defense Framework, India and America have decided that they will work together in the defense, space, maritime security, cyber and industrial sectors in the coming decade. Its objective is to create better coordination between the armies of the two countries and increase cooperation in technological development. Defense experts believe that this agreement will give a new direction to the strategic partnership between India and America. Through this, efforts will be made to maintain the balance of power in the Indo-Pacific region, so that dominance of any one country cannot be established.

Raksha Mantri Shri @rajnathsingh met with us @SecWar Mr. @PeteHegseth on the sidelines of the 12th ADMM-Plus in Kuala Lumpur today. Both leaders held cordial & constructive discussions on strengthening the India-US defense partnership, reviewed ongoing cooperation in defence… pic.twitter.com/a1ZDqd8CEg

— Ministry of Defence, Government of India (@SpokespersonMoD) October 31, 2025

Partnership will move forward with new energy-Rajnath Singh

Defense Minister Rajnath Singh described this agreement as the beginning of a new era in India-US relations. He said that this agreement will deepen the cooperation between the two countries and will open new possibilities in the defense sector in the coming ten years. Rajnath Singh also said that defense cooperation will remain the strongest pillar of India-US relations and will guarantee the security and stability of both the countries.

India is our trusted ally-America

US Defense Minister Pete Hegseth said that this partnership between India and America will prove to be very important for regional stability in the coming years. He said that both the countries together will set new standards in technology, information and defense production. Hegseth said that America wants to see an Indo-Pacific that is free, open and with equal opportunities for all. India’s role is very important in this direction.

Shared perspective on Indo-Pacific

Both India and America made it clear that they are committed to maintaining peace and freedom in the Indo-Pacific region. Rajnath Singh said that it is necessary to keep this area free from any kind of pressure or military domination. America also said that it will cooperate with India in every possible way to keep the region safe and stable.

Strong message on China

In Kuala Lumpur, US Defense Minister Hegseth met Chinese Defense Minister Admiral Dong Jun and clearly said that America does not desire any conflict, but will take every necessary step to protect its interests. This statement indicates that America still wants to keep its strategic role active in the Indo-Pacific and India is an important partner for it.

Growing defense trade and technical cooperation

Defense trade between India and America has now reached more than $25 billion. Many important deals have been signed between the two countries, the major ones being the purchase of MQ-9B Predator drone and GE-F404 engine. These projects will not only increase India’s military capability but will also boost defense production under the Make in India initiative. Many big American companies are now ready for joint production in India, which will boost employment and technological development.

Strong partnership despite differences

Some differences have emerged between India and the US in recent months over trade policies, yet defense cooperation between the two countries remains strong. Rajnath Singh said that the partnership between the two countries is so deep that no trade tension or geopolitical challenge can weaken it.

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Two-day talks were held in Kuala Lumpur, the capital of Malaysia, between senior officials of the world’s two largest economies, America and China. US Finance Minister Scott Besant told the media on Sunday that the meeting between the two sides will lay the foundation for the meeting between President Trump and Xi Jinping. The US Finance Minister said that issues related to agricultural procurement, TikTok, trade, rare earth minerals and bilateral relations were discussed in the conversation.

This dialogue between America and China is important not only from the commercial but also from the political point of view. The Chinese delegation, led by Vice Prime Minister He Lifeng, included trade representative Li Chenggang and Vice Finance Minister Liao Min. At the same time, the American side was led by Finance Minister Besant and Trade Representative Jamieson Greer. According to sources, a large part of the meeting focused on issues like fentanyl smuggling and TikTok data security. America has long been accusing China that Chinese tech companies monitor the data of its citizens. However, this time the talks are said to be more positive than before. Both countries have said in a joint statement that dialogue is the best way to resolve differences.

Trump’s Asia tour and strategic message

This conversation took place at a time when President Donald Trump is on his first major tour of Asia in his second term. Prime Minister Anwar Ibrahim welcomed him upon his arrival in Malaysia. Trump gave a message of regional stability by witnessing the peace agreement between Thailand and Cambodia. After Malaysia, Trump will visit Japan and South Korea. At the same time, he is scheduled to meet Chinese President Xi Jinping during the Asia-Pacific Economic Cooperation (APEC) summit. This meeting will be the first face-to-face meeting of the two leaders after Trump returned to the White House in January.

What did Trump tell the journalists?

Speaking to reporters aboard Air Force One, President Trump said he hoped talks with Xi Jinping would lead to a complete and practical agreement. He said, ‘We will have direct dialogue on issues like tariffs, exports, agricultural procurement, Taiwan policy and Ukraine. This is the most effective way to resolve differences.

This statement of Trump has come at a time when trade tensions, differences regarding Taiwan and technological competition between the two countries are continuously increasing. According to US officials, President Trump is planning to take a tough stance in this meeting on American concerns over TikTok and illegal trafficking of fentanyl.

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