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Informist, Tuesday, Dec. 23, 2025

 

--Govt source: India in talks with Mexico to get 50% tariff levy deferred

--Govt source:Aim to finalise terms of reference of Mexico trade deal by Jan

 

By Krity Ambey

 

NEW DELHI – The Indian government, which initiated engagement with Mexico after the latter announced plans to impose steep tariffs on all non-preferential trade partners including India from Jan. 1, aims to finalise the terms of reference for a trade agreement by January, a commerce ministry official said. At the same time, India is also in talks with Mexico to seek a deferral of the proposed 50% tariff on goods shipped from India, the official added.

 

India is in discussions with Mexico for a preferential trade agreement to mitigate the adverse impact of the planned 50% tariff on its goods. A preliminary assessment by the commerce ministry suggests the tariffs could affect around $2 billion worth of Indian exports, spanning across sectors such as automobiles and auto components, iron and steel, textiles, plastics, and leather.

 

As the agreement under discussion is a preferential trade agreement, the terms of reference, or ToR, will not be very expansive and should not take long to conclude, the official said. "We have to decide the number of tariff lines that we want to include under the PTA," the official said. "We are also engaging with them to get the tariff levy deferred at least until the ToR is finalised."

 

India is hopeful Mexico will defer the tariff, as the country's Ministry of Economy has conveyed to the Indian Embassy that the measure is not aimed specifically at India, the official said. He added that Mexico has taken the step, largely in line with the US, to curb a surge in imports from China.

 

Following the US decision to impose 50% duty on Indian goods, Mexico's tariff announcement has added to the pressure on New Delhi to resolve the issue, the official said. However, if India finalises a trade deal with the US in the meantime, it may have the leeway to deprioritise Mexico, the official said.

 

India exported goods worth $5.75 billion to Mexico in 2024–25 (Apr–Mar) and recorded a trade surplus of $2.88 billion, as imports from Mexico remained lower. Although exports to Mexico accounted for just 1% of India's total shipments in 2024-25 (Apr-Mar), New Delhi sees the country as a strong potential market as it looks to diversify exports after its top destination, the US, levied a 50% duty on Indian goods in August.  End

 

US$1 = INR 89.67

 

Edited by Tanima Banerjee

 

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