India Proposes Retaliatory Tariffs On US Imports Against Safeguard Duty On Auto
The safeguard measures would affect $2895 million imports annually into the United States of the relevant products originating in India, on which the duty collection would be $723.75 million: Reports
CHENNAI: India has informed the World Trade Organisation that it proposes to impose retaliatory tariffs on the US against levying safeguard duties on imports of automobiles and auto parts. India will take a decision on the increased tariff rates and products later.
The US on March 26, 2025 had 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. The measures have not been notified by the United States to the WTO, but are, in essence, safeguard measures, India argued.
The safeguard measures would affect $2895 million imports annually into the United States of the relevant products originating in India, on which the duty collection would be $723.75 million.
Hence, India has proposed to suspend concessions provided to US imports equivalent to the adverse effects on India’s trade due to the 25 per cent tariff imposed on automobiles and auto parts.
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.
India reserves its right to adjust the products as well as the tariff rates. It also reserves the right to withdraw, modify, supplement or replace this notification, or make a further notification or notifications as and when required, to ensure that the objective under Agreement of Safeguards is met, India said.