India Plans Retaliatory Duties on US Auto Tariffs

India’s Position on US Tariffs

India is pushing back against US tariffs on auto parts. The country plans to impose retaliatory duties. These duties follow the rules set by the World Trade Organization (WTO).

WTO Notification

India told the WTO’s Council for Trade in Goods about its plan. This plan is to suspend some trade benefits. It’s a response to the US tariffs on auto parts from India.

US Safeguard Measures

Here’s what the US did:

• On March 26, the US increased tariffs by 25%.
• These tariffs affect passenger vehicles, light trucks, and certain auto parts from India.
• The new tariffs start on May 3, 2025, for auto parts.
• There’s no end date for these tariffs.

India’s Response

India has a few issues with the US measures:

• India believes these measures break the rules of GATT 1994 and the agreement on safeguards.
• The US and India haven’t talked about these tariffs yet.
• India keeps the right to suspend some trade benefits or other duties.

Impact on Imports

The US tariffs will affect a lot of imports:

• About $2,895 million worth of imports from India each year.
• The US will collect about $723.8 million in duties from these imports.
• India’s response will affect US products. India will collect the same amount in duties.

Adjustments and Reservations

India wants to make sure its response is fair. So, it keeps the right to:

• Change the products affected.
• Adjust the tariff rates.