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India warns of 'appropriate measures' as Mexico accelerates tariff hike affecting Asian exporters despite earlier deferral
Commerce Secretary Rajesh Agrawal has already held high-level discussions with Mexico's Vice Minister of Economy Luis Rosendo, with follow-up technical meetings expected soon.
UPDATED: Dec 13, 2025 14:06 IST
India has strongly objected to Mexico's abrupt decision to raise import tariffs on goods from countries without free trade agreements, warning it may take "appropriate measures" to protect its exporters whilst continuing diplomatic efforts to reverse the move.
The Government of India said the unilateral tariff increase, which could see duties rise as high as 50% on certain products, does not align with "the spirit of cooperative economic engagement" between the two nations or with principles of transparency in the multilateral trading system.
"While we understand that the motivation for this step by the Mexican government is unrelated to India, India believes that unilateral increases in MFN tariffs, without prior consultations, do not align with the spirit of our cooperative economic engagement," a source said.
The tariff revisions, which affect 1,463 product categories, will impact several Asian economies, including India, China, South Korea, Thailand and Indonesia. Most products are expected to face duties of around 35%, though rates will range from 5% to 50%.
Mexico's Ministry of Economy unexpectedly resubmitted the tariff proposal on 3 December 2025, accelerating the legislative process after initially deferring it to August 2026 following concerns raised by affected trading partners and Mexican industry groups.
The Mexican government has cited support for local production and reducing trade imbalances as the primary rationale. However, observers believe the move is linked to Mexico's ongoing USMCA review negotiations with the United States and American pressure to align tariff policies against China and prevent transshipment of Chinese goods to the US market.
India's response has been swift. Commerce Secretary Rajesh Agrawal has already held high-level discussions with Mexico's Vice Minister of Economy Luis Rosendo, with follow-up technical meetings expected soon. The Indian Embassy in Mexico first raised concerns on 30 September 2025, seeking special concessions to shield Indian exports.
The Department of Commerce is examining the detailed implications of the tariff revisions whilst engaging with Mexican authorities to explore mutually beneficial solutions within global trade rules.
The source indicated that the actual impact on Indian exports will depend on how critical Indian goods are to Mexican supply chains and whether Indian companies can secure exemptions or pass tariff costs to Mexican consumers. The detailed list of affected items has yet to be officially notified.
"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 source added.
Despite the dispute, India emphasised it values its partnership with Mexico and remains committed to working collaboratively toward a stable and balanced trade environment benefiting businesses and consumers in both countries.
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Published By:
indiatodayglobal
Published On:
Dec 13, 2025
