India Fires Back at US Auto Tariffs with WTO Retaliation Plan Worth $723M

Image Source: Swarajya

India has formally notified the World Trade Organization (WTO) of its intent to impose retaliatory duties on select US goods, countering Washington’s recent 25% safeguard tariffs on Indianorigin passenger vehicles, light trucks, and auto parts. The move comes amid ongoing negotiations for an interim trade agreement between the two nations.

Tariff Trigger:

On March 26, 2025, the US imposed a 25% ad valorem tariff on Indian auto exports, effective May 3, citing safeguard measures.
India argues these actions violate WTO norms and were not formally notified by the US.

India’s Response:

India proposes to suspend trade concessions worth $723.75 million, equivalent to the estimated annual duty impact.
The retaliatory duties will target selected USorigin products, with implementation possible 30 days postnotification.

Trade Impact:

The US tariffs affect $2.895 billion worth of Indian auto exports annually.
India’s countermeasures aim to restore parity under WTO’s Agreement on Safeguards.

Diplomatic Backdrop:

The development unfolds just days before the July 9 deadline for finalizing a bilateral trade deal, raising stakes for both sides.
India had earlier taken similar action over US tariffs on steel and aluminium.

Next Steps: