Mexico's 50% Tariff Hike Hits Indian Exports; FTA Talks Stalled, US Pressure Suspected

• Mexico has increased import duties by up to 50% on various products, causing concern for Indian exporters.
• The tariff hike, following a similar increase in April 2024, particularly impacts Indian automobile, auto parts, and steel sectors.
• Indian exporters are urging the government to negotiate a Free Trade Agreement (FTA) with Mexico to mitigate the impact.
• Mexico is reportedly unwilling to discuss an FTA, possibly due to US pressure, as it aims to protect its domestic industries.
• India's engineering exports to Mexico declined by 12% from April to October 2025, with significant drops in steel and auto components.

Why It Matters: Mexico's 50% tariffs, possibly US-influenced, threaten Indian exports and FTA talks.