Trade Tensions Escalate: India Moves to Retaliate Against US Auto Tariffs at WTO

India has formally notified the World Trade Organization (WTO) of its intent to impose retaliatory duties on US goods, responding to what it calls “safeguard measures” imposed by the US on automobile imports and parts. The US had levied a 25% ad valorem tariff on imports of passenger vehicles, light trucks, and auto components from India, effective May 3, 2025, without notifying the WTO.

 

India argues these measures violate WTO norms and has reserved the right to suspend trade concessions equivalent to the $723.75 million in duties it estimates will be collected annually on $2.89 billion worth of Indian exports. If consultations fail, India may raise tariffs on selected US products after 30 days from July 4.

 

This move comes amid ongoing negotiations for an interim trade agreement between the two nations. India had taken similar action earlier in response to US tariffs on steel and aluminium.

 

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Source: Business Standard – India Proposes Retaliatory Duties Against US Auto Tariffs