Overview
- Mexico’s Congress approved the measure on December 11, raising most-favoured-nation tariffs to between 5% and 50% across about 1,463 tariff lines for countries without trade agreements, with the detailed product list still pending.
- Officials say India and Mexico have initiated free-trade agreement discussions, with terms of reference expected to be finalised soon to frame formal negotiations.
- Commerce Secretary Rajesh Agrawal has held a high-level meeting with Mexico’s vice minister Luis Rosendo, and technical follow-ups are planned to explore solutions within global trade rules.
- India has lodged formal objections to the unilateral move and states it "reserves the right to take appropriate measures" to safeguard its exporters.
- Industry groups flag risks to autos, auto components, machinery, electronics, chemicals, pharmaceuticals, textiles and plastics, with India’s FY25 goods exports to Mexico around $5.75 billion; Mexico cites support for domestic manufacturing, while analysts point to U.S.-driven curbs on Chinese trans-shipment as a factor.