India has proposed imposing retaliatory tariffs on select US products in response to Washington’s safeguard duties on automobile imports from India, according to a notification circulated at the World Trade Organization (WTO).
The notification, submitted to the WTO’s Council for Trade in Goods, outlines India’s plan to suspend concessions or other obligations under the WTO framework. The move follows the US decision to levy a 25 per cent ad valorem tariff on imports of passenger vehicles, light trucks, and certain automobile parts from India, effective May 3, 2025.
India has argued that these safeguard measures violate the General Agreement on Tariffs and Trade (GATT) 1994 and the WTO Agreement on Safeguards. New Delhi also noted that the United States has not officially notified these measures to the WTO, despite their significant impact on bilateral trade.
“The proposed suspension of concessions or other obligations would take the form of an increase in tariffs on selected products originating in the United States,” the notification of the WTO said, adding: “This notification is made in connection with safeguard measures extended by the United States of America on imports of automobile parts from India.”
As consultations requested by India have not taken place, the country has invoked its right under WTO rules to suspend equivalent concessions. According to the notification, the US tariffs are expected to affect Indian exports worth $2.895 billion annually, resulting in a projected duty collection of $723.75 million.
“Accordingly, India’s proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the United States,” the notice states.
India has also reserved the right to modify the list of targeted products and the level of tariffs as necessary, and to issue further notifications if required.
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“India reserves the right to withdraw, modify, supplement or replace this notification,and/or make a further notification or notifications as and when required.”
The move comes even as India and the United States continue negotiations on an interim trade agreement to strengthen bilateral trade ties. Last month, India had taken similar action in response to US tariffs on steel and aluminium.
(With Inputs from PTI)
