India Seeks WTO Consultations Over 25% US Tariffs on Auto Imports

India has approached the World Trade Organisation (WTO) to initiate safeguard consultations with the United States following the imposition of a 25% tariff on imports of certain automobile products from India.

Tariffs Imposed Without WTO Notification

On March 26, 2025, the US introduced a 25% ad valorem tariff on imports of passenger vehicles, light trucks, and specific auto parts from multiple countries, including India. These duties came into effect on May 3, 2025, and are set to continue for an unspecified period.

Reportedly, in a formal communication to the WTO on June 2, India stated that these measures qualify as “safeguard measures” under Article XIX of the GATT 1994 and the Agreement on Safeguards. According to India, the US implemented the tariffs without notifying the WTO Committee on Safeguards, which is required under Article 12.1(c) of the agreement.

India’s Request for Consultations

India has requested consultations with the United States to discuss the matter. It stated that, as a WTO member with a notable export interest in the affected goods, it is entitled to initiate this process under WTO rules. India also expressed interest in scheduling the consultations at a mutually agreed-upon date and venue.

Previous Dispute on Metal Tariffs

This action follows a similar case raised by India against US tariffs on steel and aluminium products. In that case, India argued that the US tariffs imposed under Section 232 of the US. Trade Expansion Act amounted to safeguard measures. However, the US rejected India’s claims following a notification submitted on May 9, 2025.

Read more: Trump Doubles Tariffs on Steel and Aluminium to 50% for Imports, UK Exempted!

Trade Data

In 2024, the US imported around $89 billion worth of auto components. Of this, imports from Mexico stood at $36 billion, China at $10.1 billion, and India at $2.2 billion.

Conclusion

India’s filing at the WTO marks another formal challenge in a series of trade-related disagreements between the two countries, specifically concerning tariffs introduced without prior multilateral notification.

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