India US steel aluminium tariffs: India proposes retaliatory duties against US over auto tariffs at WTO

US auto tariffs India response: The move follows the US decision to levy a 25 per cent ad valorem tariff on imports of passenger vehicles, light trucks, and certain automobile parts from India, effective May 3, 2025.

By: Express Web Desk Written by Ravi Dutta Mishra

New Delhi | Updated: July 4, 2025 09:36 PM IST

3 min read

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Trade data show that the US is India’s third-largest copper export market, after Saudi Arabia (26 per cent) and China (18 per cent). (Photo: Pixabay)

India US steel aluminium tariffs: The chances of a US concession on steel and auto tariffs under the trade deal appear slim, as India has proposed imposing retaliatory duties under World Trade Organisation (WTO) norms against the US auto tariffs. A similar step was taken on steel earlier this year, which was dismissed by the US at the top trade body.

The proposal for retaliatory duties comes as government officials indicated that the US may not be willing to offer concessions on these items to any country, and that approaching the WTO could help preserve India’s negotiating position in future parleys.

This assumes significance as Indian exporters have said they have already suffered losses worth over $5 billion due to the 25 per cent US tariffs on steel. The tariffs were later revised to 50 per cent in June. Meanwhile, India’s auto component exports could also lose out on the growing US market due to the 25 per cent tariffs.

“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,” according to a WTO notification being circulated at the request of India.

India has notified the 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 stated.

On March 26 this year, the US 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 from India.

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India has maintained that the measures taken by the United States are not consistent with the General Agreement on Tariffs and Trade (GATT) 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,” it added.

The safeguard measures would affect $2,895 million worth of imports annually into the United States of the relevant products originating in India, on which the duty collection would amount to $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,” it said.

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