Now Reading: ‘No basis to seek…’: US disagrees to India asking for WTO consultations on auto tariffs; calls it ‘essential security exception’ | India Business News
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‘No basis to seek…’: US disagrees to India asking for WTO consultations on auto tariffs; calls it ‘essential security exception’ | India Business News
‘No basis to seek…’: US disagrees to India asking for WTO consultations on auto tariffs; calls it ‘essential security exception’ | India Business News
The United States has knowledgeable the World Trade Organization (WTO) that India’s request for consultations concerning American tariffs on cars and auto elements underneath the commerce watchdog’s safeguard settlement was unfounded.The United States notified the WTO on Monday that the automotive tariffs had been carried out underneath Section 232, a nationwide security provision, and that the nation continues to preserve these measures underneath the important security exception inside international commerce rules. US stated it was “maintaining these actions pursuant to the essential security exception.”India had requested for consultations with the United States after the latter carried out a 25% advert valorem tariff enhance on imports of passenger autos, gentle vehicles, and particular vehicle components originating from India.The automotive elements measure took impact from May 3, 2025, with none specified finish date, in accordance to an ET report.
US rejects India in search of WTO consultations
- India had raised considerations in regards to the US’s failure to notify the WTO Committee concerning safeguard measures underneath the Agreement on Safeguards (AoS) provisions.
- Global auto components imports to the US totalled $89 billion within the earlier yr, with Mexico supplying $36 billion, China $10.1 billion, and India contributing $2.2 billion.
- The United States has stated that its actions weren’t taken underneath Section 201 of the Trade Act of 1974, which governs safeguard measures. The US added that consultations underneath the Agreement on Safeguards weren’t relevant as these weren’t safeguard measures.
- The US response mirrors its stance on India’s proposed retaliatory duties on 29 US merchandise, together with apples, almonds, pears, anti-freezing preparations, boric acid and particular iron and metal gadgets. These had been supposed to counter US tariffs on metal and aluminium, which India reported would impression $7.6 billion of US imports.
These WTO discussions come amidst ongoing negotiations for a Bilateral Trade Agreement (BTA) between the 2 nations. US commerce representatives visited New Delhi from June 4-10 for discussions concerning the commerce pact.
