India has warned of taking “appropriate measures” to safeguard the interests of its exporters after Mexico announced a 50 per cent tariff hike on India for select products.
“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 official said.
According to a report by PTI, the official said that India is engaged with Mexico over its decision to raise import tariffs in order to find mutually beneficial solutions.
“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 between Commerce Secretary Rajesh Agrawal and Mexico’s Vice Minister of Economy Luis Rosendo has already taken place, and follow-up technical-level discussions are expected soon.
“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 official added.
The official further said the actual impact on Indian exports would depend on the importance of Indian products in Mexico’s domestic supply chains and the ability of Indian companies to obtain exemptions or pass on the increased costs to Mexican consumers.
India has conveyed that unilateral hikes in MFN (most favoured nation) tariffs without prior consultations do not align with the spirit of cooperative economic engagement or with the principles of predictability and transparency that underpin the multilateral trading system.
The government is currently examining the details and implications of Mexico’s tariff revisions and remains engaged with stakeholders to monitor developments, the official said.
Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said Mexico’s decision is a cause for concern, especially for sectors such as automobiles and auto components, machinery, electrical and electronics, organic chemicals, pharmaceuticals, textiles and plastics.
“Such steep duties will erode our competitiveness and risk disrupting supply chains that have taken years to develop,” Sahai said, adding that the move highlights the urgency for India and Mexico to expedite a comprehensive trade agreement.
Industry body ACMA said domestic auto component manufacturers will face higher cost pressures due to the increased duties on Indian imports.
India’s exports to Mexico stood at USD 5.75 billion in 2024–25, while imports were valued at USD 2.9 billion.
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