NEW DELHI: Ahead of a bilateral trade deal with the United States, India on Friday proposed to the World Trade Organization (WTO) to impose retaliatory tariffs on US automobile parts imports.
The notification follows US tariffs on Indian automobile parts, which India argues are inconsistent with WTO agreements and are harming its trade interests. The US, on March 26, 2025, imposed a 25% tariff on imports of passenger vehicles, light trucks, and certain automobile parts originating in India. These measures were set to take effect on May 3, 2025, and will continue indefinitely, potentially creating long-term disruptions for Indian exporters.
“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. Without prejudice to the effective exercise of its right to suspend substantially equivalent obligations referred to in Article 8.2, AoS, India reserves its right to suspend concessions or other obligations after the expiration of thirty days from the date of this notification,” said India in a notification to WTO.
The proposed suspension, which involves tariff increases on selected US products, is set to come into effect 30 days after the notification is issued. In its official notification, India outlined that the suspension will specifically target US exports worth approximately $2.895 billion annually to India. The suspension of concessions is expected to result in $723.75 million in additional duties on US products.
India also highlighted that, despite the significant impact of the US tariffs on Indian trade, the US has not formally notified these measures to the WTO, which is required under WTO rules for transparency and accountability.
