Latest news with #CommitteeonSafeguards

Business Standard

India challenges 25% US auto tariffs at WTO, seeks safeguard consultations

India has formally challenged the United States' imposition of steep tariffs on auto imports by lodging a request for consultations with the World Trade Organisation (WTO) amid ongoing bilateral talks with Washington. In its June 2 filing, India stated that the 25 per cent duties imposed by the US on passenger vehicles, light trucks, and specific auto parts constitute a "safeguard measure", intended to protect US domestic producers from a perceived import surge. The tariffs, effective from May 3, 2025, were introduced without prior notification to the WTO's Committee on Safeguards, violating Article 12.1(c) of the WTO's Safeguards Agreement, India said in its submission. India presses for talks, warns of retaliation India's request seeks consultations under Article 12.3 of the Safeguards Agreement, aiming to 'exchange views' with the US and assess the legality of the measure. It highlighted its 'significant export interest' in the affected auto products and called on Washington to respond swiftly with a proposed date and venue for the talks. India also formally reserved its right to take retaliatory action if the consultations fail to reach a resolution within the 30-day window permitted under WTO rules. 'India reserves all its rights under the Agreement Establishing the World Trade Organisation and its Annexes, including the Agreement on Safeguards,' the notice stated. The filing at the WTO marks the first time New Delhi has taken a more assertive stance in its trade talks with the US. India was among the first countries to engage with the Trump administration following the announcement of 'Liberation Day' tariffs and, until now, had steered clear of openly criticising US trade policies, favouring quiet diplomacy instead. However, India has previously signalled its willingness to respond in kind, having threatened reciprocal action over US tariffs on metal imports. US delegation to arrive in India for trade talks The WTO filing comes at a crucial time as negotiators from both sides are working to wrap up a potential interim trade deal before July, when a 90-day pause on new tariffs ends. The timing also overlaps with a visit by a US trade delegation to India on June 5-6, aimed at advancing talks on a wider set of tariff issues, including the recent doubling of US duties on steel and aluminium. India's submission argued that since the US measures qualify as safeguards, they must adhere to specific procedural steps outlined in WTO rules. If talks collapse, India is permitted under WTO rules to suspend equivalent concessions by imposing its own duties in response. 'India reserves all its rights under the Agreement Establishing the World Trade Organisation and its Annexes, including the Agreement on Safeguards,' the notice concluded. WTO rules permit a country to suspend equivalent concessions, such as imposing its own duties, if consultations do not lead to a settlement.