Mexico’s tariff hike triggers concern among Indian exporters

The announcement by Mexico to increase tariffs by up to 50% on imports from several Asian countries, including India and China, has created serious concern among Indian exporters. India’s annual exports to Mexico, valued at over ₹52,000 crore, could be significantly impacted. These tariffs are likely to come into effect from January 1, 2026.

50% tariff to be imposed from January 1

The tariff hike was approved by both houses of the Mexican Congress on December 11, 2025. The decision targets imports from countries that do not have a Free Trade Agreement (FTA) with Mexico. This includes India, China, South Korea, Thailand, and Indonesia. Mexico plans to impose import duties ranging from 5% to 50% on around 1,463 products.

Indian government raises strong objection, talks begin

The Government of India has formally raised strong objections to Mexico’s decision and has reserved the right to take appropriate steps to protect the interests of Indian exporters. India’s Commerce Secretary Rajesh Agrawal has already held a high-level meeting with Mexico’s Deputy Economy Minister Luis Rosendo, and more discussions are expected in the near future.

Sectors likely to be affected

Indian exporters have expressed serious concern over the move. The key sectors expected to be impacted include:

Automobile and auto components

Machinery, electricals, and electronics

Organic chemicals and pharmaceuticals

Textiles and plastics

Exports worth over ₹52,000 crore at risk

According to data for the financial year 2024–25, India’s exports to Mexico stood at USD 5.75 billion (over ₹52,077 crore), while imports from Mexico were USD 2.9 billion. If the higher tariffs are implemented, a significant portion of India’s exports could be adversely affected.

Mexico has stated that the tariff hike aims to promote domestic manufacturing and reduce trade imbalances. Meanwhile, the Indian government is attempting to resolve the issue through dialogue with Mexico to safeguard Indian export markets.