Commerce secy says Mexico’s tariffs not targeted at New Delhi; trade talks underway

India is assessing the impact of Mexico’s decision to raise MFN tariffs on non-FTA partners, a move that could affect around $2 billion worth of Indian exports, even as New Delhi has been told that the measure is not directed at India, Commerce Secretary Rajesh Agrawal said. 

Mexico has approved an increase in MFN import tariffs on 1,455 tariff lines within the WTO framework, targeting non-FTA partners, with the revised duties set to take effect from January 1, 2026, according to official briefings. Preliminary estimates indicate that Indian exports in sectors such as automobiles, two-wheelers, auto parts, textiles, iron and steel, plastics, leather and footwear could be impacted. 

Government sources said the measure is also aimed at curbing Chinese imports and correcting trade imbalances, and that India is ascertaining the underlying rationale and scope of the tariff hike. “The primary target is not India,” the Commerce Secretary said, adding that New Delhi is engaging closely with Mexican authorities to mitigate the impact on Indian exporters. 

A virtual meeting was held on December 2 between Commerce Secretary Rajesh Agrawal and Mexico’s Vice Minister Dr Luis Rosendo, where both sides agreed to pursue a trade arrangement to address the issue promptly. Technical discussions to mitigate the impact were initiated from December 12, officials said. 

According to official data shared during the briefing, India-Mexico merchandise trade stood at $8.74 billion in 2024, with India recording exports of $5.73 billion and imports of $3.01 billion, resulting in a trade surplus of $2.72 billion. 

After the US’s 50% tariffs on India, it is now Mexico’s turn. The Mexican government has green-lit a sweeping tariff increase of up to 50% on imports from China and several other Asian nations, including India, South Korea, Thailand and Indonesia, as part of a broader effort to bolster domestic industries ahead of the implementation date on January 1, 2026. 

The tariff package, passed by Mexico’s lower house, will raise duties on a wide range of products — from automobiles and auto parts to textiles, plastics and steel — targeting countries without existing trade agreements with Mexico. The bulk of affected items will face hikes of up to 35%, with selected categories hit by the full 50% levy.

Separately, Agrawal provided an update on India-US trade negotiations, saying the two sides have already completed six rounds of discussions. The Commerce Secretary, who is also the chief negotiator for Indo-US trade pact, said the recent visit of the Deputy US Trade Representative to India was aimed at familiarising the US side with India’s priorities and taking stock of the overall trade situation. 

The Commerce Secretary also said India is currently engaged in multiple trade negotiations with the US, Canada, Peru, the European Union, Chile, Qatar, Israel, SACU and New Zealand, while the India-Oman trade agreement has been completed and is poised to be signed soon.