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Time of India
a day ago
- Automotive
- Time of India
India proposes retaliatory duties against US auto tariffs
NEW DELHI: India on Friday proposed imposing of retaliatory duties under WTO norms against the US tariffs on imports of auto parts in the name of safeguard measures. "The proposed suspension of concessions or other obligations would take the form of an increase in tariffs on selected products originating in the US," according to a notification of the WTO being circulated at the request of India. India has notified WTO's Council for Trade in Goods of its proposed suspension of concessions and other obligations under certain WTO provisions. "This notification is made in connection with safeguard measures extended by the United States of America on imports of automobile parts from India," it said. On March 26 this year, the US adopted a safeguard measure in the form of a tariff increase of 25% ad valorem on imports of passenger vehicles and light trucks, and on certain auto parts from India. These measures apply from May 3, 2025 as regards auto parts, and for an unlimited duration. The measures have not been notified by the US to the WTO, but are, in essence, safeguard measures. India has maintained that the measures taken by the US are not consistent with the GATT (General Agreement on Trade and Tariff) 1994 and the agreement on safeguards. As consultations sought by India on these tariffs have not taken place, "India reserves the right to suspend concessions or other obligations", the WTO notification added. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like They Were So Beautiful Before; Now Look At Them; Number 10 Will Shock You Reportingly Undo by Taboola by Taboola The safeguard measures would affect $2,895 million imports annually into the US of the relevant products originating in India, on which the duty collection would be $723.8 million. "Accordingly, India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the US," it said. To ensure the effective exercise of its right to suspend substantially equivalent concessions or other obligations, the multinational body said, India has reserved its right to adjust the products as well as the tariff rates. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
NDTV
a day ago
- Business
- NDTV
At WTO, India Proposes Retaliatory Duties Against US Aver Auto Tariffs
New Delhi: India on Friday proposed imposing retaliatory duties under the WTO (World Trade Organisation) norms against the US over American tariffs imports on the country's auto parts in the name of safeguard measures. "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," according to a notification of the WTO being circulated at the request of India. India has notified the WTO's Council for Trade in Goods of its proposed suspension of concessions and other obligations under certain WTO provisions. "This notification is made in connection with safeguard measures extended by the United States of America on imports of automobile parts from India," it said. On March 26 this year, the US adopted a safeguard 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 from India. These measures apply from May 3, 2025 as regards automobile parts, and for an unlimited duration. The measures have not been notified by the United States to the WTO, but are, in essence, safeguard measures. India has maintained that the measures taken by the United States are not consistent with the GATT (General Agreement on Trade and Tariff) 1994 and the agreement on Safeguards. As consultations sought by India on these tariffs have not taken place, "India reserves the right to suspend concessions or other obligations", the WTO notification added. The safeguard measures would affect USD 2,895 million imports annually into the United States of the relevant products originating in India, on which the duty collection would be USD 723.75 million. "Accordingly, India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the United States," it said. To ensure the effective exercise of its right to suspend substantially equivalent concessions or other obligations, the multinational body said, India has reserved its right to adjust the products as well as the tariff rates. "India reserves the right to withdraw, modify, supplement or replace this notification,and/or make a further notification or notifications as and when required," it added. The development is important as India and the US are actively negotiating an interim trade agreement to boost trade ties. India has last month taken similar measures against the US tariffs on steel and aluminium. Commenting on India's decision to reserve rights, think tank Global Trade Research Initiative (GTRI) said India's WTO notification is a legal and strategic step, signalling its readiness to retaliate against the US safeguard duties on automobiles and parts. By invoking a provision of the WTO's Safeguards Agreement, India is asserting its rights under international trade rules. "The proposed retaliation -- tariff hikes on US goods worth over USD 700 million -- is proportionate to the injury caused. However, whether India will follow through remains uncertain," GTRI Founder Ajay Srivastava said. He added that in a similar case involving US steel tariffs, India held back. Given the sensitive timing of the India-US trade deal and broader geopolitical considerations, this may be more of a warning shot than a guaranteed action, he said.
Mint
a day ago
- Automotive
- Mint
India warns of retaliatory tariffs against US over auto parts safeguard duties
New Delhi: India has formally notified the World Trade Organization (WTO) of its plan to suspend trade concessions on certain US-origin products in response to Washington's safeguard tariffs on Indian automobile parts, escalating trade tensions just days ahead of the anticipated announcement of a bilateral trade deal. In a notification dated 3 July to the WTO's Council for Trade in Goods, and published on Friday, India invoked Article 12.5 of the Agreement on Safeguards, stating its intention to impose retaliatory duties on select US products. The move follows the United States' decision to extend safeguard tariffs—amounting to a 25% ad valorem increase—on imports of passenger vehicles, light trucks, and certain automobile components from India, effective 3 May. 'The proposed suspension of concessions or other obligations would take the form of an increase in tariffs on selected products originating in the US,' India's WTO communication stated, noting that these retaliatory duties would match the impact of the US safeguard action. The estimated trade affected by the US action is valued at $2.9 billion, with India seeking to reciprocally recover $723.75 million annually through its proposed tariff measures. Article 12.5 of the WTO Agreement on Safeguards allows a member country to notify its intention to suspend trade concessions if another member imposes safeguard measures without proper consultation. A senior government official, on the condition of anonymity, said that India's action was necessary to assert its WTO rights and prevent the normalisation of unilateral safeguard measures. 'This sends a clear message that India will not allow unfair trade actions to go unanswered, particularly when due process under the WTO framework is bypassed,' the official said. Earlier, Mint reported on 11 June that Washington had turned down India's notice for WTO consultations on the US's 25% tariff on auto components, asserting that the auto duties were imposed on national security grounds and therefore are not subject to multilateral trade rules, as per a WTO paper. According to the WTO document, India maintained that the US measures, which were imposed without prior notification to the WTO or the mandatory consultations under Article 12.3 of the Safeguards Agreement, are inconsistent with the global trade rules enshrined in the General Agreement on Tariffs and Trade (GATT) 1994 and the WTO's safeguard provisions. Article 12.3 of the WTO Safeguards Agreement requires a country planning safeguard measures to consult affected members in advance, providing them an opportunity to discuss the proposed action and seek clarification. While India has not yet specified the exact products or tariff rates, it has reserved the right to implement the retaliatory duties 30 days after the date of notification—effectively from early August. The government also retained the option to revise the product list and duty structure as needed, signalling flexibility in its retaliatory strategy, as per India's WTO notice. The timing of India's notification is significant. It comes amid heightened expectations of a breakthrough in the ongoing India-US Bilateral Trade Agreement (BTA) negotiations, with both sides reportedly aiming for a first-phase announcement before 9 July. The move could be seen as an attempt by India to build negotiating leverage, especially as it pushes for the removal of US safeguard duties as part of the final deal contours. Trade analysts say that India's WTO notification is a legal and strategic step, signaling its readiness to retaliate against the US safeguard duties on automobiles and parts.'By invoking Article 8.2 of the Safeguards Agreement, India is asserting its rights under international trade rules. The proposed retaliation—tariff hikes on US goods worth over $700 million—is proportionate to the injury caused,' said Ajay Srivastava, co-founder of the Global Trade Research Initiative, a trade research think tank. 'However, whether India will follow through remains uncertain. In a similar case involving US steel tariffs, India held back. Given the sensitive timing of the India-US trade deal and broader geopolitical considerations, this may be more of a warning shot than a guaranteed action,' said Srivastava.
Indian Express
a day ago
- Business
- Indian Express
India hits back at US over auto tariffs, proposes retaliatory duties at WTO
India has proposed imposing retaliatory tariffs on select US products in response to Washington's safeguard duties on automobile imports from India, according to a notification circulated at the World Trade Organization (WTO). The notification, submitted to the WTO's Council for Trade in Goods, outlines India's plan to suspend concessions or other obligations under the WTO framework. The move follows the US decision to levy a 25 per cent ad valorem tariff on imports of passenger vehicles, light trucks, and certain automobile parts from India, effective May 3, 2025. India has argued that these safeguard measures violate the General Agreement on Tariffs and Trade (GATT) 1994 and the WTO Agreement on Safeguards. New Delhi also noted that the United States has not officially notified these measures to the WTO, despite their significant impact on bilateral trade. '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 of the WTO said, adding: 'This notification is made in connection with safeguard measures extended by the United States of America on imports of automobile parts from India.' As consultations requested by India have not taken place, the country has invoked its right under WTO rules to suspend equivalent concessions. According to the notification, the US tariffs are expected to affect Indian exports worth $2.895 billion annually, resulting in a projected duty collection of $723.75 million. 'Accordingly, India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the United States,' the notice states. India has also reserved the right to modify the list of targeted products and the level of tariffs as necessary, and to issue further notifications if required. 'India reserves the right to withdraw, modify, supplement or replace this notification,and/or make a further notification or notifications as and when required.' The move comes even as India and the United States continue negotiations on an interim trade agreement to strengthen bilateral trade ties. Last month, India had taken similar action in response to US tariffs on steel and aluminium. (With Inputs from PTI)
Time of India
a day ago
- Business
- Time of India
'Reserve the right to suspend...': Amidst trade deal talks, India proposes retaliatory duties against US at WTO; here's what the issue is about
India has informed the WTO's Council for Trade in Goods regarding its intended suspension of concessions. (AI image) India has proposed retaliatory tariffs on Friday against the United States at the WTO (World Trade Organisation) in response to American safeguard measures on the automobile sector. The move comes amidst ongoing trade deal talks with the Donald Trump administration. "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," states a WTO notification circulated at India's request. According to a PTI report, India has informed the WTO's Council for Trade in Goods regarding its intended suspension of concessions and other obligations under specific WTO provisions. India-US WTO Issues On March 26 this year, the United States implemented a safeguard measure, imposing a 25 per cent ad valorem tariff increase on imports of passenger vehicles, light trucks, and specific automobile parts from India. Starting from May 3, 2025, these regulations were implemented for automobile components and will continue indefinitely. Also Read | India-US trade deal: What's the deadlock about? Top issues blocking agreement as Donald Trump's 26% tariff deadline looms "This notification is made in connection with safeguard measures extended by the United States of America on imports of automobile parts from India," the WTO document indicated. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo The United States has not registered these regulations with the WTO, although they fundamentally constitute safeguard measures. India's position maintains that the United States' actions do not align with GATT (General Agreement on Trade and Tariff) 1994 and the Safeguards Agreement. Since the United States has not responded to India's request for consultations regarding these tariffs, India has stated it "reserves the right to suspend concessions or other obligations". The safeguard measures would impact annual imports worth $2,895 million into the United States from India, resulting in duty collections of $723.75 million. "Accordingly, India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the United States," according to the statement. In March, India implemented comparable measures in response to American tariffs on steel and aluminium. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
