India proposes to impose retaliatory strike against $725 million US auto tariffs
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New Delhi: India has informed the World Trade Organisation (WTO) of its intention to impose retaliatory tariffs on certain U.S. goods in response to American safeguard measures targeting imports from India’s automobile sector.
According to a notification circulated by the WTO at India’s request, 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 further explained that the decision is directly linked to the U.S. government's extension of safeguard duties on Indian automobile parts. India has formally submitted this proposal to the WTO’s Council for Trade in Goods, TNIE reported.
India has raised concerns over a U.S. decision to impose a 25% tariff on imports of passenger vehicles, light trucks, and certain auto parts from India. These measures, adopted on March 26, 2025, are set to take effect on May 3 and have no specified end date.
Although the U.S. has not officially notified the WTO of these actions, India has characterised them as safeguard measures.
According to a report by Reuters, India's WTO notification estimated that the resulting U.S. tariff collections could reach around $725 million. In response, India is preparing to impose retaliatory tariffs on American goods of an equivalent value.
India has also argued that the U.S. measures violate the terms of the General Agreement on Tariffs and Trade (GATT) 1994, as well as the WTO’s Agreement on Safeguards.
Since requested consultations on the issue have not taken place, India has asserted its right to suspend trade concessions or obligations under WTO rules.