India Engages Mexico on Tariff Hike, Reserves Right to Protect Exporters

• Mexico has unilaterally increased tariffs (5-50%) on 1,463 product lines from countries without free trade agreements, including India, effective January 1, 2026.
• India is engaging with Mexico's Ministry of Economy to find mutually beneficial solutions and reserves the right to safeguard its exporters' interests.
• The tariff hike impacts Indian exports in sectors like automobiles, auto components, machinery, and pharmaceuticals, raising concerns about competitiveness and supply chains.
• Both India and Mexico are looking to initiate negotiations for a Free Trade Agreement (FTA) to mitigate such tariff impacts in the future.
• India believes unilateral tariff increases without consultation do not align with cooperative economic engagement or multilateral trading principles.

Why It Matters: Mexico's tariffs threaten Indian exports; India aims to protect its interests.