Mexico's 50% Tariff Hike Hits Indian Exports; FTA Sought

• Mexico has raised import tariffs by up to 50% on goods from countries without trade agreements, including India.
• Indian exporters, particularly in the steel, automobile, and auto components sectors, face significant impact from Mexico's tariff hikes.
• Indian industry bodies are urging the Commerce Ministry to pursue a Free Trade Agreement (FTA) with Mexico to mitigate the effects.
• Engineering exports from India to Mexico declined by 12% from April to October 2025, with notable drops in steel and auto components.
• Mexico's Senate approved the tariff increase in December to protect its domestic manufacturers.

Why It Matters: Mexico's tariff hike threatens Indian exports, pushing for a crucial Free Trade Agreement.