India looks to sign trade deal with Mexico as tariffs loom – Reuters

India is seeking a preferential trade deal with Mexico in order to mitigate a tariff hike of up to 50% set to be implemented by the Latin American country next month, Reuters reported on Monday.

Mexico approved the hike in import taxes on goods from several countries, including India, last week, according to the report.

“Mexico’s primary target is not to hit Indian exports,” India’s Commerce Secretary Rajesh Agrawal said on Monday, according to the report.

India has been engaging with Mexico since September of this year to “pursue a trade agreement to mitigate the impact promptly,” he added.

Mexico says the tariffs are aimed at boosting local industry, protecting employment, and addressing trade imbalances.

Analysts, however, have said the move is aimed at appeasing the US ahead of a regional trade pact review next year, according to the Reuters report.

Agrawal said technical discussions for a deal are underway after an online meeting between him and Mexican Vice Minister Luis Rosendo.

India’s exports to Mexico were estimated at $5.73 billion in 2024, while imports stood at $3.01 billion. The bulk of these consisted of vehicles, base metals, auto parts, and textiles.

New Delhi expects Mexico’s tariffs to affect about $2 billion worth of exports, according to Agrawal.

The US imposed 50% tariffs on India in August. Earlier this month, US President Donald Trump threatened additional tariffs on the country, accusing it of dumping rice into the American market.

The US is the largest export market for both India and Mexico.

New Delhi is negotiating deals with nearly a dozen countries or trade blocs, including the US and the European Union.