The commerce ministry announced on December 15 that India has suggested negotiating a limited trade agreement with Mexico in order to mitigate the effects of additional tariffs that the Mexican government is planning.
"A free trade deal will take longer, thus obtaining a preferential trade agreement is the faster option. Thus, we have begun talking about this with Mexico," stated Commerce Secretary Rajesh Agarwal.

In an effort to protect domestic manufacturers, the Mexican Senate on December 11 authorised a plan to increase import duties to up to 50% on over 1,400 commodities coming from China, India, and other Asian economies next year.

The commerce ministry also stated that tariffs might have an impact on about $2 billion worth of Indian exports to Mexico, including textiles, cars, two-wheelers, and auto parts.