New Delhi, Sunday, December 14, 2025 – Mexico tariff hike on India, as the Latin American nation approved duties of up to 50% on imports from countries without free trade agreements. The measure affects Indian goods worth billions annually. India raised concerns over the unilateral move.
The Mexican Congress cleared the bill on December 11. Tariffs range from 5% to 50% across 1,463 product lines. They target automobiles, auto parts, textiles, steel, chemicals, and electronics.
India, Mexico 50% Tariff: Diplomatic Engagement
India actively engages Mexican authorities. Discussions seek mutually beneficial solutions. The Embassy of India in Mexico City approached the Ministry of Economy on September 30. It requested concessions for Indian exports.
Commerce Secretary Rajesh Agrawal held talks with Mexico’s Vice Minister of Economy, Luis Rosendo. Further technical meetings follow. A government official stated that unilateral MFN tariff increases lack consultation. They contradict the principles of cooperative engagement and multilateral transparency.
India reserves the right to take appropriate measures. It aims to protect the interests of exporters. The official added that the actual impact depends on the role of Indian goods in Mexican supply chains. Companies may secure exemptions or pass costs to consumers.
Mexico Unilateral Tariff India: Sectoral Concerns
The automobile sector faces a severe blow. Mexico ranks as India’s third-largest car export market. Exports include vehicles from Volkswagen, Hyundai, Maruti Suzuki, and Nissan. Around $1 billion in shipments are at risk of disruption.
Passenger vehicles previously faced a 20% duty. Now rates jump to 50%. Engineering goods form 61% of India’s $5.75 billion exports to Mexico in 2024-25. Many fall under higher tariffs.
Other affected items cover machinery, electrical equipment, organic chemicals, aluminium, plastics, and pharmaceuticals. Industry groups lobbied earlier. The Society of Indian Automobile Manufacturers urged maintaining the status quo. Engineering Exports Promotion Council pushed for FTA talks.
Indian Exports to Mexico Tariff Impact: Trade Figures
India exported $5.75 billion to Mexico in the 2024-25 fiscal year. Imports stood at $2.9 billion. Trade surplus favours India. Vehicles contribute one-third of outbound shipments.
Between April and October 2025, engineering exports declined by 12%. Categories such as steel, aluminium, and auto components saw declines. Think tanks estimate 75% of Indian exports could face hikes. Most duties cluster around 35%.
Mexico aims to protect the domestic industry. It seeks to reduce imbalances and generate revenue. The move aligns with US pressures. Mexico signals curbs on Chinese trans-shipment ahead of USMCA review.
Background of Mexico Tariff Hike
India and Mexico lack a comprehensive FTA. Bilateral trade grows steadily. Key Indian exports include automobiles, chemicals, and pharmaceuticals. Mexico supplies crude oil and components.
Past engagements focused on expanding ties. Recent developments strain predictability. WTO rules govern MFN tariffs. Unilateral hikes raise compliance questions.
What’s Next
Both sides are preparing for FTA negotiations. Parameters finalise soon. An agreement could exempt Indian goods from hikes. It provides long-term insulation.
India monitors detailed notifications. Exporters diversify markets. Diplomatic channels remain open. Resolution sought before January implementation under the Mexico tariff hike framework in India.
Published in SouthAsianDesk, December 14th, 2025
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