50% tariff shock: India in contact with Mexico over ‘unilateral’ transfer; intention for ‘steady and balanced commerce surroundings’ – The Instances of India


As India reels amid steep tariff hike by Mexico, ranging as much as 50 per cent, an official stated New Delhi is actively partaking with Mexican authorities over what it views as a “unilateral” transfer to boost duties on a variety of merchandise. The discussions, the official stated, are geared toward discovering options helpful to each nations, whereas conserving open the choice of defending Indian exporters’ pursuits. The feedback had been made to PTI. The tariff will increase apply to nations that wouldn’t have free commerce agreements with Mexico, together with India, China, South Korea, Thailand and Indonesia. In keeping with the official, India had raised considerations even when the preliminary invoice was launched. India’s Embassy in Mexico approached the Mexican Ministry of Economic system on September 30, searching for particular consideration to protect Indian exports from the revised tariff construction. “India values its partnership with Mexico and stands able to work collaboratively towards a steady and balanced commerce surroundings that advantages companies and shoppers in each nations,” the official stated. India and Mexico are additionally making ready to start discussions on a free commerce settlement, with formal negotiation parameters anticipated to be finalised shortly. Analysts imagine such an settlement would assist insulate Indian firms from the brand new duties, which had been carried out below American stress to align Mexican tariffs with US measures towards China and to curb oblique shipments into the American market. The Mexican Senate accepted the tariff laws on December 11, with ratification by each chambers of Congress. The transfer is meant to strengthen home manufacturing and scale back commerce imbalances. Beneath the choice, import duties starting from 5 to 50 per cent will apply to round 1,463 product classes from nations with out free commerce agreements with Mexico, together with India. The detailed product record has not but been printed. The revised tariffs will come into impact from January 1, 2026. “The Division of Commerce is engaged with Mexico’s Ministry of Economic system to discover mutually helpful options which align with world commerce guidelines,” the official stated. A senior-level dialogue has already taken place between Commerce Secretary Rajesh Agrawal and Mexican Vice Minister of Economic system Luis Rosendo, with additional technical-level conferences deliberate. “India reserves the fitting to take applicable measures to safeguard the pursuits of Indian exporters, whereas persevering with to pursue an answer by way of constructive dialogue,” the official added. The official famous that the precise affect on Indian exports would rely on how vital these items are to Mexican provide chains, in addition to the power of Indian firms to safe exemptions or go on prices to Mexican shoppers. India, the official stated, views unilateral MFN tariff will increase with out prior session as inconsistent with the rules of predictability and transparency underpinning cooperative financial engagement and the multilateral buying and selling system. The federal government is continuous its evaluation of Mexico’s tariff adjustments whereas remaining in shut contact with all stakeholders. Trade our bodies have voiced concern over the transfer. FIEO Director Normal Ajay Sahai warned that the choice might have an effect on sectors reminiscent of vehicles, equipment, electrical items, chemical substances, prescribed drugs, textiles and plastics. “Such steep duties will erode our competitiveness and danger disrupting provide chains which have taken years to develop,” Sahai stated, in line with PTI, calling for sooner progress on a complete commerce settlement. ACMA has additionally indicated that Indian auto part producers might face greater price pressures because of the elevated duties on exports to Mexico. India’s exports to Mexico stood at $5.75 billion in 2024–25, whereas imports from Mexico had been valued at $2.9 billion.