India has strong objection to Mexico increasing import duty by 50%, ‘appropriate steps’ will be taken

India has expressed strong objection to Mexico’s decision to suddenly increase import duty on products coming from countries outside the Free Trade Agreement (FTA). The Government of India has clarified that it reserves the right to take appropriate steps to protect the interests of its exporters, however, efforts will continue to resolve the issue through diplomatic negotiations.

According to government sources, this unilateral decision of Mexico is not in accordance with the spirit of cooperative economic relations between India and Mexico and the principles of transparency in the multilateral trading system. Under this decision, import duty on some products may increase by up to 50 percent, while an average duty of 35 percent is expected on most items.

“While we understand that the motivation behind this move by the Mexican government is unrelated to India, India believes that unilaterally increasing the MFN duty without prior consultation is not in keeping with the spirit of our cooperative economic engagement,” a source said.

This duty revision will affect a total of 1,463 product categories and will impact India as well as several Asian countries like China, South Korea, Thailand and Indonesia. Tariffs range from 5 percent to 50 percent, although most of the affected items will fall within the 35 percent bracket.

Mexico’s Economy Ministry unexpectedly re-introduced the proposal on December 3, 2025, speeding up the legislative process. Earlier, it was postponed to August 2026 following objections from affected trading partners and Mexican industry groups. The Mexican government has cited supporting local production and reducing trade imbalance as the main reasons. However, experts believe that this step may also be related to the review negotiations of the US-Mexico-Canada Agreement (USMCA) and US pressure to tighten tariff policies against China.

India’s response has been swift. Commerce Secretary Rajesh Aggarwal has held high-level discussions with Mexico’s Deputy Economy Minister Luis Rosendo and technical level meetings are likely in the coming days. India had expressed concern through its embassy in Mexico on September 30, 2025 itself, demanding special concessions to save Indian exports.

The Commerce Department is examining the broader impacts of this tariff increase and is communicating with Mexican authorities to seek a mutually beneficial solution within the framework of global trade rules. According to sources, the actual impact on Indian exports will depend on how important Indian products are in Mexico’s supply chain and whether companies are able to get rebates or pass on the duty burden to consumers. The final list of affected items has not been officially notified yet.

“India reserves the right to take appropriate steps to protect the interests of its exporters, and will continue to seek solutions through constructive dialogue,” another statement said.

Despite the controversy, India reiterated that it values ​​its partnership with Mexico and is committed to continued cooperation to create a stable and balanced trade environment for businesses and consumers of both countries.

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