India Raises Strong Objections to Mexico’s Tariff Hike, Signals Possible Countermeasures

India has formally objected to Mexico’s decision to sharply raise import tariffs on goods originating from countries without free trade agreements, warning that the move could trigger retaliatory steps if Indian exporters are adversely affected. The development has introduced fresh strain into bilateral trade relations and prompted high-level diplomatic engagement between the two sides.

The revised tariff regime announced by Mexico proposes steep duty increases on a wide range of products, with rates reportedly rising as high as 35 to 50 per cent in certain categories. The changes are expected to apply to over a thousand product lines and are set to be implemented earlier than initially anticipated. Indian officials have expressed concern over the sudden nature of the decision, describing it as a unilateral measure that undermines predictability in international trade.

New Delhi has conveyed its objections through diplomatic channels, emphasising that the move disproportionately impacts Indian exports, as India does not currently have a free trade agreement with Mexico. Officials estimate that a significant portion of Indian shipments to the Latin American nation could become uncompetitive once the higher tariffs come into force. Key sectors likely to be affected include automobiles and auto components, engineering goods, electronics, metals, textiles and machinery.

The Ministry of Commerce has initiated talks with Mexican authorities to seek clarity and possible relief. Senior officials have already held discussions with their counterparts in Mexico, and further technical-level consultations are expected in an effort to explore exemptions or alternative arrangements. India’s embassy in Mexico has also been actively engaged, raising concerns over the impact of the tariff hike on long-standing commercial ties.

While stressing its preference for dialogue, the Indian government has made it clear that it reserves the right to take appropriate measures to safeguard domestic industry and exporters. Officials noted that trade actions must be consistent with global norms and should not unfairly disadvantage specific countries or partners.

Industry bodies in India have voiced alarm over the potential fallout, warning that the higher duties could lead to order cancellations, loss of market share and disruptions to supply chains built over several years. Exporters have urged the government to press for immediate relief while also accelerating discussions on a broader trade framework with Mexico to provide long-term stability.

At the same time, New Delhi has underlined the importance of maintaining constructive relations with Mexico, highlighting the need for a balanced and stable trade environment. Officials reiterated India’s commitment to resolving the issue through engagement rather than escalation, provided the concerns of Indian businesses are addressed.

As negotiations continue, the situation is being closely watched by exporters and policymakers alike. The outcome is expected to shape the future trajectory of India–Mexico trade relations and may influence India’s broader approach to dealing with sudden tariff changes imposed by key trading partners.