India Plans Retaliatory Tariffs On US Auto Imports At WTO

2025-07-05 02:04:14

(MENAFN- KNN India) New Delhi, Jul 5 (KNN) India has formally notified the World Trade Organisation (WTO) of its intention to impose retaliatory tariffs on U.S. goods in response to Washington's decision to levy 25 per cent duties on passenger vehicles, light trucks, and select auto parts fr0m India.

This safeguard measure, introduced on March 26 and effective since May 3, targets an estimated USD 2.895 billion in Indian exports and has generated approximately USD 723.75 million in potential annual U.S. revenue.

In its WTO filing, India states that it“reserves the right to suspend concessions or other obligations” by imposing equivalent tariffs on U.S. goods, although it has not yet released specifics on tariff rates or targeted American products.

New Delhi argues that the U.S. actions violate the General Agreement on Tariffs and Trade (GATT) 1994 and the WTO's safeguard provisions, and that U.S.–India consultations on the matter have not taken place.

This marks the second time in recent months that India has escalated trade tensions reciprocally-after imposing counter-duties on U.S. steel and aluminium earlier this year.

The formal notification to WTO's Council for Trade in Goods is intended to bolster India's negotiating position amid stalled bilateral talks with the U.S., raising the stakes ahead of a looming July 9 deadline set by Washington.

Despite ongoing discussions, India remains firm on safeguarding its agriculture and dairy sectors, while expressing willingness to moderate its tariff stance for broader agreement goals.

U.S. officials, including President Trump, have indicated that a deal is“very close” and could avert the imposition of a sweeping 26–27 per cent tariff on all Indian imports post-July 9.

In summary, India's retaliatory WTO move underscores its resolve to defend export interests while leveraging trade diplomacy against U.S. tariffs, all unfolding under the shadow of a critical July 9 deadline.

(KNN Bureau)

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