India Proposes Retaliatory Tariffs at WTO Against US Auto Duties

India has informed the World Trade Organisation (WTO) of its intention to impose retaliatory duties on selected goods from the United States, as per news reports. The move is in response to American tariffs on Indian automobile exports, which India says are in violation of global trade rules.

US Tariffs on Indian Auto Exports

On March 26, 2025, the US imposed a 25% tariff on imports of passenger vehicles, light trucks, and certain automobile parts from India. These measures came into effect on May 3, 2025. They have not been notified by the WTO but are being treated by India as safeguard measures, as per the PTI report.

WTO Notification Filed by India

India submitted a notification to the WTO’s Council for Trade in Goods proposing the suspension of concessions or other obligations. The notification cites US duties on auto parts as inconsistent with the General Agreement on Tariffs and Trade (GATT) 1994 and the WTO Agreement on Safeguards.

India estimates the US tariffs will affect Indian automobile exports worth $2.89 billion annually. The additional duty burden from these measures is estimated at around $723.75 million. India has proposed to impose duties of an equivalent value on US-origin goods.

Read more: India-US Mini Trade Pact Hits Roadblock Amid Disagreements on Agriculture, Dairy, and GM Crops

No Agreement on Consultations

India had earlier requested consultations with the US on the auto tariffs, but those discussions did not take place. The US has stated that its measures are based on national security concerns, and thus not subject to WTO rules. India has reserved the right to adjust the list and rates of proposed duties.

Similar Action on Steel and Aluminium

In the past, India has taken similar steps at the WTO over US tariffs on steel and aluminium. In the current case, India has not disclosed the specific products or tariff rates it may apply in retaliation.

Conclusion

The development comes as India and the US continue discussions around a limited trade agreement. India is open to cutting its high tariffs for the US, but it's holding firm on demands to open its agriculture and dairy sectors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.