- India warns of measures after Mexico's 50% tariff hike on select Indian products
- India and Mexico engaged in dialogue to resolve tariff issues under global trade rules
- India and Mexico plan to negotiate a free trade agreement to mitigate tariff impact
After Mexico approved a 50 per cent tariff hike on India for select products, New Delhi has warned of taking "appropriate measures" to safeguard its interests, an official said on Saturday.
"India reserves the right to take appropriate measures to safeguard the interests of Indian exporters, while continuing to pursue a solution through constructive dialogue," the official said.
According to a report by PTI, the official said that India was engaged with Mexico during the initial tabling of a bill in this regard.
"The Department of Commerce is engaged with Mexico's Ministry of Economy to explore mutually beneficial solutions which align with global trade rules," the official said.
A high-level meeting between Commerce Secretary Rajesh Agrawal and Mexico's Vice Minister of Economy Luis Rosendo has taken place, and follow-up meetings are expected.
The government said that unilateral increases in MFN (most favoured nation) tariffs, without prior consultations, do not align with the spirit of our cooperative economic engagement or with the principles of predictability and transparency underpinning the multilateral trading system.
The tariffs that are imposed to protect the national industry and producers are set to come into effect from January 1, 2026.
Read | Mexico Slaps 50% Tariffs On India. $1 Billion Exports In Crosshairs
"India values its partnership with Mexico and stands ready to work collaboratively toward a stable and balanced trade environment that benefits businesses and consumers in both countries," the official added.
Mexico has imposed duties on goods such as auto parts, light cars, clothing, plastics, steel, household appliances, toys, textiles, furniture, footwear, leather goods, paper, cardboard, motorcycles, aluminium, trailers, glass, soaps, perfumes, and cosmetics, per El Universal, a Mexican daily.
Countries that do not have a trade deal with Mexico will be impacted, like India, South Korea, China, Thailand, and Indonesia.
India and Mexico are also seeking to start negotiations for a free trade agreement, with experts saying that it will help insulate Indian companies from these tariffs.
