India is in discussions with Mexico on a preferential trade agreement

India and Mexico initiated discussions to promptly mitigate the impact of tariffs imposed on Indian goods by Mexico and to chart ways and means to protect trade interests.

- TBG NETWORK

Mexico has approved tariff hikes of up to 50 per cent from 2026 on imports of select products from Asian countries, including India and China, to protect the national industry and producers.Citing support for local production and the correction of trade imbalances, Mexico has approved an increase in MFN import tariffs (5-50 per cent) starting in 2026 on 1,455 tariff lines under the WTO framework, targeting non-FTA partners. According to India, preliminary estimates suggest that this affects around USD 2 billion exports to Mexico - particularly automobiles, two-wheelers, auto parts, textiles, iron and steel, plastics, leather and footwear, etc. First proposed in September 2025, the proposal was deferred to August 2026 after concerns from non-FTA partners and industry. The proposal was