US Imposed Additional 25% Duty on Select Indian Goods, Mexico Raised MFN Duties Up To 50%: Commerce Ministry in Lok Sabha.

The Ministry of Commerce and Industry confirmed that two of India's major trading partners, the United States and Mexico, have recently raised import duties on indian goods. Commerce Ministry told Lok Sabha that the US imposed an additional 25% duty on select Indian exports in August 2025, while Mexico revised its import tariffs under WTO rules, raising duties on around 1,455 product categories. These tariffs, ranging from 5% to 50% (mostly around 35%)

In February 2026, during a Lok Sabha session, a Member of Parliament raised concerns about rising import duties on Indian goods by major trading partners. The question sought clarity on which countries had increased tariffs, the government’s response, and the steps being taken to safeguard India’s export competitiveness.

The government taken various measures to strengthen domestic capacities and boost exports, diversify supply chains, and build economic resilience against global trade disruptions.

Key initiative:

• Trade relief measures by the Reserve Bank of India,
• The Credit Guarantee Scheme for Exporters,
• Reforms under the Goods and Services Tax to enhance domestic demand
• The newly launched Export Promotion Mission (EPM) provides targeted support to exporters

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The Government stated that assessing the impact of trade agreements is an ongoing process, with continuous engagement across industry associations, export councils, Indian missions abroad, and other stakeholders to mitigate trade disruptions. To strengthen competitiveness and support exporters, several initiatives have been launched:

• Foreign Trade Policy (2023): designed to integrate India more effectively into goal market, improve trade competitiveness, and establish the country as a reliable and trusted trade partner.
• The Rebate of State and Central Levies and Taxes(RoSCTL Scheme (2019): promote labour -oriented certain items of the textiles sector
• Remission of Duties and Taxes on Exported Products (RoDTEP(2021): The benefit of the RoDTEP scheme has also been extended to sectors like steel, pharma and chemicals with effect from December 15, 2022, to enhance the export competitiveness of these sectors.

• Districts as Export Hubs: Identifies local products/services with export potential and supports employment.
• Trade Connect ePlatform: Unified digital portal offering trade data, compliance guidance, buyer information; over 19 lakh users by Jan 2026.
• Export Promotion Mission (2025–31): Flagship program with ₹25,060 crore outlay, supporting MSMEs and first-time exporters throughNiryat protshan (finance) and Niryat disha (non-financial support).

The Government is combining policy reforms, tax refund schemes, digital platforms, district-level initiatives, and a major export mission to safeguard competitiveness and expand India’s global trade presence.

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