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.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.
