India Promises "Appropriate Measures" in Response to Mexico's 50% Import Tariffs: Trade Tensions Rise

New Delhi has issued a warning about taking "appropriate measures" to protect its interests following Mexico's approval of a 50 percent tariff increase on select Indian products.

"India reserves the right to take appropriate measures to safeguard the interests of Indian exporters, while continuing to pursue a solution through constructive dialogue," stated an official on Saturday.

According to PTI reports, the official mentioned that India had been engaged with Mexico when the bill was initially proposed.

"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 explained.

A high-level meeting has already taken place between Commerce Secretary Rajesh Agrawal and Mexico's Vice Minister of Economy Luis Rosendo, with additional follow-up meetings expected soon.

The Indian government emphasized that unilateral increases in Most Favoured Nation (MFN) tariffs without prior consultations contradict both the spirit of cooperative economic engagement and the principles of predictability and transparency that underpin the multilateral trading system.

These tariffs, designed to protect Mexico's national industry and producers, are scheduled to take effect from January 1, 2026.

"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 various goods including auto parts, light vehicles, clothing, plastics, steel, household appliances, toys, textiles, furniture, footwear, leather goods, paper, cardboard, motorcycles, aluminum, trailers, glass, soaps, perfumes, and cosmetics, according to Mexican daily El Universal.

Countries without trade agreements with Mexico will be affected, including India, South Korea, China, Thailand, and Indonesia.

India and Mexico are currently seeking to initiate negotiations for a free trade agreement, which experts believe could shield Indian companies from these tariff increases.