Archive · 14 Dec 2025
India-Mexico Trade Talks Amid Tariff Hike
India and Mexico are talking about a big change in trade rules.
Mexico decided to increase taxes on goods from countries like India, China, and others that don't have special trade deals with them.
These new taxes will affect many products and start next year.
India is worried because it exports a lot to Mexico, and these new taxes could make it harder for Indian companies to sell their goods there.
So, India is trying to work out a deal with Mexico to either lower these taxes or make a new special trade agreement.
This way, Indian companies can keep selling their products without too many problems.
Both countries are meeting to discuss how to make this work fairly for everyone.
Mexico has raised import tariffs on products from countries without free trade agreements, including India.
India is in talks with Mexico to find a mutually beneficial solution and is considering a free trade agreement.
The new tariffs range from 5% to 50% and will affect 1,463 tariff lines, taking effect from January 1, 2026.
India has expressed concerns about the impact on its exports, particularly in sectors like automobiles, machinery, and pharmaceuticals.
High-level meetings have taken place between Indian and Mexican officials to discuss the issue and explore potential solutions.
- Who
- India and Mexico
- What
- Trade talks and potential free trade agreement
- When
- Ongoing, with tariffs effective from January 1, 2026
- Where
- Between India and Mexico
- Why
- To address Mexico's tariff hike and protect Indian exporters
- Countries Affected
- India, China, South Korea, Thailand, Indonesia
- Tariff Range
- 5% to 50%
- Number of Tariff Lines
- 1,463
- Effective Date
- January 1, 2026
- India's Exports to Mexico (2024-25)
- USD 5.75 billion
- Mexico's Imports from India (2024-25)
- USD 2.9 billion
Sources
India in talks with Mexico over tariff hike, explores free trade pact to protect exporters
India engages Mexico over up to 50% tariff hike, raises MFN concerns
India's "Appropriate Measures" Vow After Mexico's Steep 50% Import Tariffs
India In Talks With Mexico Over 50% Tariff Hike, Warns Of 'Appropriate Measures': Report
'Rising Barriers'
India warns appropriate retaliatory measures after Mexico raised tariff to 50%
Major Customs reforms on the anvil
