certain Indian exporters have warned that Mexico’s decision to increase import tariffs—up to 50% in certain cases—could have a significant effect on important exports, with steel, vehicles, and auto parts projected to suffer an even more severe hit.
Mexico Tariff Pressures Rise
This is due to the fact that in April 2024, Mexico slapped tariffs ranging from 5% to 50% on a number of these imports, making these businesses especially susceptible to another round of rises.
To lessen the impact, several exporters have officially asked the Commerce Ministry to seek a Free Trade Agreement (FTA) with Mexico. According to a source, business executives have even brought up the matter directly with Minister Piyush Goyal.
The insider said, “We hope negotiations start soon, but we were informed Mexico does not want to engage with us yet.”
In an effort to protect indigenous manufacturers, the Mexican Senate on December 11 authorized a proposal to increase import duties on more than 1,400 commodities from China, India, and other Asian nations to up to 50% next year.
India Seeks Trade Relief
Imports from nations including China, India, South Korea, Thailand, and Indonesia that do not have trade agreements with Mexico will be subject to higher duties.
In order to lessen the effects of increasing tariffs, India should start free trade agreements with Mexico, according to EEPC India Chairman Pankaj Chadha, who told Moneycontrol that he expects discussions would start shortly.
The association that represents engineering exporters, EEPC India, actually brought up the matter in a letter to the commerce minister in November. It warned that higher tariffs from Mexico could reduce the competitiveness of important export markets and urged the government to start negotiations for a free trade agreement, or at the very least, a preferential trade agreement.
Mexico Impact Hits Exports
India’s overall engineering exports to Mexico fell 12% year over year between April and October of 2025.
Outbound shipments decreased during this time in a number of industries, including steel (down 7%), iron and steel products (down 26%), aluminum and related products (down 56%), auto components (down 20%), and two and three-wheelers (down 32%).
In FY25, India’s exports to Mexico totaled $5.75 billion, with engineering goods accounting for $3.53 billion, electronic goods for $544.57 million, organic and inorganic chemicals for $400.53 million, drugs and pharmaceuticals for $320.19 million, ready-made clothing for $190.26 million, and plastics and linoleum for $158.76 million. Other significant shipments included spices, leather goods, gems, and jewelry.
