India Proposes Retaliatory Tariffs Against US at WTO Amid Trade Talks

India has proposed retaliatory tariffs against the United States at the WTO in response to American safeguard measures on the automobile sector. The move comes amidst ongoing trade deal talks with the Donald Trump administration.

India has informed the WTO's Council for Trade in Goods regarding its intended suspension of concessions and other obligations under specific WTO provisions. On March 26 this year, the United States implemented a safeguard measure, imposing a 25 per cent ad valorem tariff increase on imports of passenger vehicles, light trucks, and specific automobile parts from India.

Starting from May 3, 2025, these regulations were implemented for automobile components and will continue indefinitely. The United States has not registered these regulations with the WTO, although they fundamentally constitute safeguard measures.

India's position maintains that the United States' actions do not align with GATT (General Agreement on Trade and Tariff) 1994 and the Safeguards Agreement. Since the United States has not responded to India's request for consultations regarding these tariffs, India has stated it 'reserves the right to suspend concessions or other obligations'.

The safeguard measures would impact annual imports worth $2,895 million into the United States from India, resulting in duty collections of $723.75 million. In March, India implemented comparable measures in response to American tariffs on steel and aluminium.

According to the source: Times of India.