INDIA is engaged with Mexico over the South American nation’s decision to unilaterally raise tariffs on a number of products to find mutually beneficial solutions, even as New Delhi reserves the right to take appropriate measures to safeguard the interests of its exporters, an official said on Saturday. These duties are announced against countries that do not have free trade agreements with Mexico, including India, China, South Korea, Thailand and Indonesia. The official said that India, in fact, was engaged with Mexico during the initial tabling of a bill in this regard.

 

The Embassy of India in Mexico raised the issue with the Ministry of Economy on September 30, 2025, itself, seeking special concessions to shield Indian exports from the new tariffs. “India values its partnership with Mexico and stands ready to work collaboratively toward a stable and balanced trade environment that benefits businesses and consumers in both countries,” the official added. Further, both the countries are looking to start negotiations for a free trade agreement, and terms of reference

 

(ToR) to initiate the talks formally are expected to be finalised soon. Experts said that the trade agreement will help insulate Indian companies from these tariffs, which were imposed under pressure from the US to align with America on increasing tariffs against China and prevent trans-shippment to America. Mexico’s Senate has approved a new tariff measure on December 11, 2025, and it has since been cleared by both chambers of Congress.

 

It is aimed at boosting manufacturing and reducing trade imbalances. Under the decision, Mexico will impose steep import tariffs - ranging from about 5 per cent to as high as 50 per cent on a wide range of goods (about 1,463 tariff lines) from countries that do not have free trade agreements with Mexico, including India, China, South Korea, Thailand and Indonesia. However, the list of items covered is yet to be officially notified. The higher duties will take effect on January 1, 2026. “The Department of Commerce is engaged with Mexico’s Ministry of Economy to explore mutually beneficial solutions which align with global trade rules,” the official said.