India warns of retaliatory steps after Mexico imposes 50 percent tariff hike

“India reserves the right to take appropriate measures to safeguard the interests of Indian exporters, while continuing to pursue a solution through constructive dialogue,” the official said.

According to PTI, India had raised concerns with Mexican authorities when the proposed tariff bill was initially introduced.

The Department of Commerce is currently engaged with Mexico’s Ministry of Economy to explore mutually beneficial solutions that are consistent with global trade rules.

A high-level meeting between Commerce Secretary Rajesh Agrawal and Mexico’s Vice Minister of Economy, Luis Rosendo, has already taken place, with further discussions expected.

The government underlined that unilateral increases in most-favoured-nation (MFN) tariffs without prior consultations run counter to the spirit of cooperative economic engagement, as well as the principles of transparency and predictability that underpin the multilateral trading system.

The higher tariffs, aimed at protecting Mexico’s domestic industries, are scheduled to come into force from January 1, 2026.

Reaffirming New Delhi’s intent to maintain stable trade ties, the official said India values its partnership with Mexico and remains open to working collaboratively towards a balanced trade environment that benefits businesses and consumers in both countries.

Mexico has imposed duties on a wide range of products, including auto parts, passenger vehicles, clothing, plastics, steel, household appliances, toys, textiles, furniture, footwear, leather goods, paper, cardboard, motorcycles, aluminium, trailers, glass, soaps, perfumes, and cosmetics, according to Mexican daily El Universal.

The tariff hike will impact countries that do not have a trade agreement with Mexico, including India, China, South Korea, Thailand, and Indonesia.

India and Mexico are also exploring the possibility of launching negotiations for a free trade agreement, which experts say could help shield Indian exporters from the impact of the new tariffs.