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Time of India
12 hours ago
- Business
- Time of India
India invokes WTO mechanism to address US safeguard duties on auto components
India has formally requested consultations with the United States under the World Trade Organisation's (WTO) Agreement on Safeguards, challenging recent American tariffs imposed on automobile parts. The move follows India's earlier decision to reserve the right to impose retaliatory duties on select US goods in response to Washington's tariffs on steel and aluminium. According to a communication sent by India to the WTO, the US on March 26, 2025, adopted a measure increasing tariffs by 25 per cent ad valorem on imports of passenger vehicles, light trucks, and certain auto components originating in or from India. These duties came into effect on May 3, 2025, and have been applied for an indefinite period, PTI reported. "India considers that the measure, in its design and effect, constitutes a safeguard measure within the meaning of... GATT (General Agreement on Tariffs and Trade) 1994 and the Agreement on Safeguards, as it is intended to protect the US domestic industry from increased imports," the communication stated. India further noted that the United States failed to notify the WTO Committee on Safeguards about the decision to apply such measures, as required under the provisions of the Agreement on Safeguards (AoS). by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký Undo "Accordingly, as an affected Member with significant export interest to the United States in the products concerned, India requests consultations with the United States," the communication added. India said it seeks to exchange views on the measure and its implications during the consultations. "India looks forward to receiving a prompt reply to this request from the United States and to setting a mutually convenient date and venue for the... consultations," it said. India also reserved all its rights under the agreement establishing the WTO. In 2024, the United States imported auto parts worth USD 89 billion globally. Mexico was the top supplier at USD 36 billion, followed by China at USD 10.1 billion. India accounted for USD 2.2 billion of those imports. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
13 hours ago
- Business
- Time of India
India seeks WTO consultations with US over safeguard measures on auto components
India has initiated discussions with the United States under the World Trade Organisation. This concerns American tariffs imposed on auto components. The move follows India's reservation to impose retaliatory duties on select US products. This is in response to US tariffs on steel and aluminium. India considers the US tariff increase a safeguard measure. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India on Tuesday sought consultations with the US under the World Trade Organisation's (WTO) safeguard agreement over American tariffs on auto move comes shortly after India reserved the right to impose retaliatory duties on select US products in response to American tariffs on steel and March 26, 2025, the US adopted a measure in the form of a tariff increase of 25 per cent ad valorem on imports of passenger vehicles and light trucks, and on certain automobile parts originating in or from India, a communication sent by India to WTO measure on automobile parts applies from May 3, 2025 and for an unlimited duration."India considers that the measure, in its design and effect, constitutes a safeguard measure within the meaning of.... GATT (General Agreement on Trade and Tariff) 1994 and the Agreement on Safeguards, as it is intended to protect the US domestic industry from increased imports," it added that the United States failed to notify the WTO Committee on safeguards under a provision of the Agreement on Safeguards (AoS) on taking a decision to apply the safeguard measure."Accordingly, as an affected Member with significant export interest to the United States in the products concerned, India requests consultations with the United States," it the consultations, India would like to exchange views on the measure."India looks forward to receiving a prompt reply to this request from the United States and to setting a mutually convenient date and venue for the... consultations," it reserves all its rights under the agreement establishing the US imported USD 89 billion worth of auto parts globally last year, with Mexico accounting for USD 36 billion, China for USD 10.1 billion, and India for just USD 2.2 billion.
Business Standard
5 days ago
- Business
- Business Standard
Tough India-US trade discussions amidst irritants over tariff tensions
Throughout last week, President Trump of the United States repeatedly irritated India with one upsetting statement or the other. India tried to pinprick the US with a proposal to impose retaliatory tariffs. Both governments should now settle down to some serious trade talks during the visit of our Commerce Minister to the US this week. Trump claimed that he threatened use of trade as a tool to coerce India and Pakistan to cease hostilities. He asked the chief of Apple, the leading phone making company, not to make its phones in India but in the US. He said that India has agreed to zero duties on import of most products from the US. India promptly rejected his claims. Last Monday, India notified the World Trade Organisation (WTO) of its proposal to impose retaliatory tariffs against the raising of tariffs on imports of steel and aluminium products by the US from 12th March 2025. India's communication followed a similar notice from the United Kingdom on 9th May 2025, proposing retaliation under the WTO agreement on safeguards (AoS). Japan followed India with a similar notification. It is difficult to understand the purpose of these proposals as all these countries are negotiating trade deals with the US. In fact, the US had already agreed to bring down the duties on steel and aluminum imported from the UK, as part of a mini trade agreement. Strangely, the notifications about the retaliation proposals of India, Japan and UK and replies of the US to Japan and UK, arguing that AoS cannot be invoked because no safeguard duties were imposed, could be seen on the WTO website till Thursday but vanished from there on Friday.
Hans India
14-05-2025
- Business
- Hans India
India updates WTO on tariff plan
New Delhi: India has informed the World Trade Organisation (WTO) that it proposes to impose retaliatory tariffs on select American goods, to counter the duties on Indian steel and aluminium exports levied by the US as safeguard duties. According to a WTO communication, these US safeguard measures would impact $7.6 billion worth of imports of Indian products, with an estimated duty collection of $1.91 billion. In April, India requested consultations with the US under the WTO's safeguard agreement when the decision to levy the tariffs was announced. The US stance at the WTO was that the tariffs on Indian goods were imposed on national security grounds and should not be regarded as safeguard measures. India, in its notification to the WTO, announced its intent to suspend concessions and other obligations in response to the US safeguard measures on steel, aluminium, and related products, as outlined in a Presidential Proclamation dated February 10, 2025, with the measures set to take effect on March 12. The WTO communication, dated May 9, 2025, was circulated at India's request. It noted that although the US has not formally notified these measures to the WTO, they are effectively considered safeguard measures. 'India maintains that the measures taken by the US are not consistent with the General Agreement on Trade and Tariff (GATT) 1994 and Agreement on safeguards (AoS),' it said, adding that as consultations provided for under a provision of the AoS have not taken place, India reserves the right to suspend concessions or other obligations that are substantially equivalent to the adverse effects of the measure to India's trade,' India's notification said. Without prejudice to the effective exercise of its right to suspend substantially equivalent obligations, India reserves its right to suspend concessions after the expiration of 30 days from the date of this notification, it further said.
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Business Standard
13-05-2025
- Business
- Business Standard
India's retaliatory tariff plan may strain trade pact talks with US: GTRI
India's proposal to impose retaliatory import duty on certain US products in response to American tariffs on steel and aluminium could cast a shadow over ongoing negotiations for a trade agreement between the two countries, think tank GTRI said on Tuesday. The Global Trade Research Initiative (GTRI) said that if the US engages in consultations with India on the matter or withdraws tariffs, a resolution may be reached. Otherwise, India's retaliatory import duties could take effect in early June, potentially impacting US exporters and deepening trade frictions, it added. In a significant move targeting US safeguard duties on steel, aluminium, and their derivative products, India has formally notified the World Trade Organisation (WTO) of its intention to suspend trade concessions granted to the US. The proposed suspension of concessions could take the form of increased tariffs on selected US products. While India has not disclosed those items yet, in a similar move in 2019, it had imposed retaliatory tariffs on 28 US products, ranging from almonds and apples to chemicals. The notice, issued on May 12, marks India's invocation of its rights under a provision of the WTO Agreement on Safeguards (AoS). This legal provision allows a country to retaliate when another member imposes safeguard measures without proper notification or consultations. India had sought consultations with the US in April, but Washington responded that the tariffs were imposed on national security grounds and should not be considered as safeguard measures. "India's latest WTO action comes at a delicate moment. New Delhi and Washington are exploring a broader free trade agreement, and this retaliation could cast a shadow over negotiations," GTRI Founder Ajay Srivastava said. He added the move signals a tougher Indian stance, especially in politically sensitive sectors like steel and aluminium that align with its Make in India industrial strategy. "Much now depends on Washington's response. If the US engages in consultations or withdraws the contested measures, a resolution may be reached. Otherwise, India's tariff response could take effect in early June," he said. India's future countermeasures could include raising tariffs on a list of US imports in a manner that is 'substantially equivalent' to the damage inflicted on Indian exports. According to the WTO notification, US safeguard duties impact about 7.6 billion worth of Indian exports, resulting in an estimated USD 1.91 billion in additional duties collected by America. India intends to recover this amount through retaliatory duties on selected American goods. The GTRI further stated that at the heart of the dispute is the continuation of US safeguard tariffs on imports of steel, aluminium, and related products, originally imposed in 2018 on national security grounds and renewed multiple times since. The latest extension was enacted via US Presidential Proclamations dated February 10, 2025, with an effective date of March 12 this year. India argues that these actions, though never officially notified by the US as safeguard measures, function as such and violate WTO rules under the General Agreement on Tariffs and Trade (GATT) 1994 and the Safeguards Agreement. "Crucially, the US did not hold mandatory consultations under Article 12.3 of AoS, prompting India to assert its right to retaliate," Srivastava said. This is not India's first brush with safeguard retaliation. In June 2019, India imposed higher tariffs on 28 US products after the US removed India from its Generalized System of Preferences (GSP) and continued its steel and aluminium tariffs. That action, which covered about USD 240 million in trade value, marked India's first use of WTO-sanctioned retaliation. The duties were withdrawn in September 2023, following Prime Minister Narendra Modi's state visit to Washington, where both countries agreed to resolve six ongoing WTO disputes, including this one. Both countries are negotiating a bilateral trade agreement (BTA). The Indian team is visiting this week to the US for trade talks. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
