India proposes retaliatory tariffs against US' auto duties at WTO
World Trade Organisation
(
WTO
) norms over American tariffs on automobile sector in the name of safeguard measures.
'The safeguard measures would affect $2.895 billion imports annually into the US of the relevant products originating in India, on which the duty collection would be $723.75 million,' India told the WTO.
The proposed suspension of concessions or other obligations would take the form of an increase in tariffs on selected products originating in the US.
'Accordingly, India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the United States," it said.
Last month, India sought consultations with the US after Washington adopted a measure in the form of a tariff increase of 25% ad valorem on imports of passenger vehicles and light trucks, and certain automobile parts originating in or from India.
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The US imported $89 billion worth of auto parts globally last year, with Mexico accounting for $36 billion, China for $10.1 billion, and India for just $2.2 billion.
This is the second case where New Delhi has proposed retaliatory tariffs on American goods. In May, India had proposed to impose retaliatory duties on certain American products under the WTO to counter the American tariffs on steel and aluminium in the name of safeguard measures. New Delhi told the WTO that these measures would affect $7.6 billion imports into the US.
'This notification is made in connection with safeguard measures extended by the United States of America on imports of automobile parts from India,' India said Friday.
On March 26 this year, the US adopted a safeguard measure in the form of a tariff increase of 25% ad valorem on imports of passenger vehicles and light trucks, and on certain automobile parts from India.
These measures apply from May 3, 2025 as regards automobile parts, and for an unlimited duration.
The measures have not been notified by the US to the WTO, but are, in essence, safeguard measures. India has maintained that the measures taken by the United States are not consistent with the General Agreement on Trade and Tariff 1994 and the agreement on Safeguards.
As consultations sought by India on these tariffs have not taken place, India said it reserves the right to suspend concessions or other obligations.
The development assumes significance as India and the US are negotiating a trade agreement, which is expected to be announced ahead of the July 9 deadline when the the 90-day pause period for Washington's retaliatory tariffs comes to an end.
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