Mexico has approved a 50% tariff hike on select imports from India, sparking trade tensions and warnings of retaliation from New Delhi.
On December 13, 2025, Mexico has announced sweeping tariff increases of up to 50% on more than 1,400 products from countries without free trade agreements, including India. The measure, set to take effect on January 1, 2026, targets sectors such as automobiles, auto parts, textiles, apparel, plastics, steel, and footwear, with the government arguing that the hike will protect domestic industries and generate additional revenue.
India, which exported goods worth $5.7 billion to Mexico in 2024, has voiced strong opposition. The Ministry of Commerce in New Delhi stated that it will take “appropriate measures” in response, raising concerns about violations of Most Favored Nation (MFN) principles under the World Trade Organization. Indian exporters, particularly in the automotive and pharmaceutical sectors, fear significant losses if the tariffs remain in place.
Mexican officials defended the move, saying it aligns with broader trade strategies and mirrors restrictions imposed by the United States on Chinese imports. Analysts suggest the decision reflects Mexico’s attempt to balance domestic economic priorities with global trade pressures, though critics warn of inflationary effects and strained bilateral relations.
Business groups in Mexico expressed mixed reactions: some welcomed the protection for local manufacturers, while others cautioned that higher costs could burden consumers and disrupt supply chains. Meanwhile, India has begun engaging Mexico diplomatically, with discussions of a possible free trade agreement to ease tensions.
The tariff hike marks one of Mexico’s most aggressive trade measures in recent years, underscoring the growing complexity of global commerce and the challenges of balancing protectionism with international cooperation.
With information from El Financiero
