New Delhi aims to protect its exporters while seeking mutually beneficial solutions through dialogue.
After Mexico levied a tariff hike of up to 50% on Indian goods, which will take effect next year, India has issued a response saying that it is “engaged” with the South American nation over its decision to “unilaterally” raise tariffs. New Delhi has made it clear that it is open to finding “mutually beneficial solutions”, while reserving the right to take “appropriate measures” to safeguard the interests of its exporters.
“India reserves the right to take appropriate measures to safeguard the interests of Indian exporters, while continuing to pursue a solution through constructive dialogue,” an official said, PTI reported.
The official also revealed 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 stated.
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.
Mexico announced the duties against countries that do not have free trade agreements with it, including India, China, South Korea, Thailand, and Indonesia. The decision was taken despite protests from local business groups and objections from the affected governments.
What the new tariffs mean
The bill, already passed by the lower house, introduces higher taxes on imports from countries that do not have a trade agreement with Mexico. According to Reuters, from 2026, certain goods such as cars, auto parts, textiles, clothing, plastics, and steel will face tariffs of up to 50%.
Most other imported products will face tariffs capped at 35%. The Senate approved the measure with 76 votes in favour, 5 against, and 35 abstentions.