India is engaging with Mexico over the Central American nation’s decision to unilaterally raise tariffs on a number of products to find mutually beneficial solutions, even as New Delhi reserves the right to take appropriate measures to safeguard the interests of its exporters, a government official said on Saturday.
The duties were announced against countries that do not have free trade agreements (FTAs) with Mexico, such as India, China, South Korea, Thailand and Indonesia.
The official said India was engaged with Mexico when a bill was tabled in this regard.
The embassy of India in Mexico had then raised the issue with the Mexican ministry of economy on September 30, seeking special concessions to shield Indian exports from the new tariffs.
India’s exports to Mexico stood at $5.75 billion in 2024-25, while imports were $2.9 billion. The major export items for India are automobiles and auto components, machinery, electrical and electronics, organic chemicals, pharmaceuticals, textiles and plastics.
“India values its partnership with Mexico and stands ready to work collaboratively toward a stable and balanced trade environment that benefits businesses and consumers in both countries,” the official added.
Further, both the countries were looking to start negotiations for an FTA, and terms of reference (ToR) to initiate the talks formally are expected to be finalised soon.
Experts said that the trade agreement will help insulate Indian companies from these tariffs, which were imposed under pressure from the US to align with America on increasing tariffs against China and prevent transhipment to America.
Mexico’s Senate approved the new tariff measure on December 11, 2025, and it has since been cleared by both chambers of Congress.
Under the decision, Mexico will impose tariffs ranging from 5 per cent to 50 per cent on about 1,463 tariff lines from countries that do not have FTAs with Mexico.
However, the list of items covered is yet to be officially notified. The higher duties will take effect on January 1, 2026.
“The department of commerce is engaged with Mexico’s ministry of economy to explore mutually beneficial solutions which align with global trade rules,” the official said.
A high-level meeting in this regard between commerce secretary Rajesh Agrawal and Mexico’s vice minister of economy Luis Rosendo has already taken place.