India Warns Mexico on 50% Tariff Hike, Eyes FTA Talks

• Mexico unilaterally imposed 50% tariffs on Indian goods, effective January 1, 2026, mirroring a US move and affecting countries without FTAs.
• India is engaged in talks with Mexico to find mutually beneficial solutions but reserves the right to take "appropriate measures" to protect its exporters.
• Both nations are exploring negotiations for a Free Trade Agreement (FTA) to mitigate the impact of these tariffs on Indian companies.
• The tariffs, also impacting China, South Korea, Thailand, and Indonesia, aim to protect Mexico's domestic industry and address cheap imports.
• Indian export sectors like automobiles, machinery, chemicals, and pharmaceuticals are particularly concerned about the tariffs eroding competitiveness.

Why It Matters: New Mexican tariffs threaten Indian exports, risking trade tensions & economic impact.