‘Reserve the right to droop…’: Amidst trade deal talks, India proposes retaliatory duties against US at WTO; here’s what the issue is about

India has knowledgeable the WTO’s Council for Trade in Goods concerning its supposed suspension of concessions. (AI picture)

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 car sector. The transfer 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 knowledgeable the WTO’s Council for Trade in Goods concerning its supposed suspension of concessions and different obligations underneath particular WTO provisions.

India-US WTO Issues

On March 26 this yr, the United States applied a safeguard measure, imposing a 25 per cent advert valorem tariff improve on imports of passenger autos, mild vans, and particular car components from India.Starting from May 3, 2025, these laws have been applied for car elements and can proceed indefinitely.Also Read | India-US trade deal: What’s the impasse about? Top points blocking settlement 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 doc indicated.The United States has not registered these laws with the WTO, though they basically represent safeguard measures.India’s place maintains that the United States’ actions don’t 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 concerning these tariffs, India has said it “reserves the right to suspend concessions or other obligations”.The safeguard measures would influence annual imports value $2,895 million into the United States from India, leading to obligation 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,” in accordance to the assertion.In March, India applied comparable measures in response to American tariffs on metal and aluminium.