VOI World/ Desk
India and Mexico are likely to initiate formal trade talks after Mexico approved steep tariffs of up to 50 percent on imports from countries without preferential trade agreements, a move that unexpectedly hit Indian exporters. The revised levies, affecting 1,463 tariff lines, will take effect from January 2026 and are expected to impose average duties of around 35 percent on most product categories.
The Mexican government cleared the tariff hike as part of a broader strategy to protect local manufacturing and reduce reliance on imports from countries such as China, India, South Korea and Indonesia. While the measures are primarily aimed at curbing Chinese shipments, they have created significant collateral impact for India, whose exports to Mexico were valued at under USD 6 billion in 2024–25.
Indian goods most affected include automobiles, auto components, pharmaceuticals, engineering products, chemical compounds and telephony machinery. Crude oil, however, remains India’s largest import from Mexico.
Discussions between the two countries have already been underway since September, when Mexican President Claudia Sheinbaum first signalled the tariff proposal. During a recent bilateral meeting, India’s commerce secretary Rajesh Agrawal and Mexico’s undersecretary of foreign trade Luis Rosendo Gutiérrez Romano explored a temporary exemption for Indian shipments while a broader trade agreement is negotiated.
Mexico, analysts say, is also keen to avoid triggering a trade dispute with India, which retains the right to adopt countermeasures to protect its commercial interests. Officials familiar with the matter say that if both sides announce talks in the coming weeks, the imposition of tariffs on Indian goods could be delayed.
Experts caution that the final impact on Indian exports will depend on how essential Indian supply chains are within Mexican manufacturing. India exported USD 5.75 billion worth of goods to Mexico last year, while importing USD 2.87 billion. Any prolonged disruptions could affect competitiveness and long-term access to the Mexican market.
