India-Mexico Trade Spat: Tariffs Spark Diplomatic Talks

India is in discussions with Mexico regarding the latter's recent decision to unilaterally impose substantial import tariffs on numerous products. These duties, set to take effect on January 1, 2026, affect approximately 1,463 tariff lines from countries without free trade agreements with Mexico, including India. The Indian Embassy in Mexico had already engaged with Mexico's Ministry of Economy on September 30, 2025, seeking concessions for Indian exports.

Both nations are also preparing to initiate negotiations for a Free Trade Agreement, with terms of reference expected to be finalized shortly. Experts suggest this agreement could shield Indian businesses from the impact of these tariffs, which were reportedly influenced by pressure to align with US trade policies. However, India emphasizes that unilateral tariff increases without prior consultation deviate from cooperative economic engagement principles.

High-level meetings have already occurred, with further technical discussions planned. While India seeks mutually beneficial solutions aligned with global trade rules, it also reserves the right to implement appropriate measures to safeguard its exporters. The ultimate impact on Indian exports will depend on their criticality to Mexican supply chains and the possibility of securing exemptions or passing on costs.