India, Mexico in talks for possible Preferential Trade Agreement to mitigate tariff hit

Key Points

1. India and Mexico are discussing mitigating the impact of Mexico's proposed tariff increases.
2. The proposed tariffs could impact $2 billion worth of exports from India to Mexico.
3. Mexico re-submitted a proposal on December 3, 2025, to hike tariffs to 50% on imports from countries without a trade agreement.
4. The proposal was cleared by both houses of the Mexican Parliament on December 9-10, 2025.
5. India is engaging bilaterally with Mexico to find a way forward, as WTO recourse is limited.
6. The tariffs are expected to impact India's automobile, textiles, iron and steel, and leather exports.
7. Mexico's move is primarily aimed at reducing imports from China.