India_Proposes_WTO_Retaliation_Against_US_Auto_Tariffs

India Proposes WTO Retaliation Against US Auto Tariffs

India has moved to the World Trade Organization to push back against Washington's 25% tariff on autos and parts, warning of matched duties on $2.89 billion of Indian exports.

According to New Delhi's official notice, US duties total about $725 million. In response, India plans to impose an equivalent amount of duty on products originating in the United States, though specific rates and goods have not been detailed.

"India reserves the right to suspend concessions or other obligations that are substantially equivalent to the adverse effects of the measure to India's trade," the statement said, signaling a firm stance.

Trade Minister Piyush Goyal made it clear that New Delhi won't buckle to deadlines. "National interest will always be supreme. Keeping that in mind, if a good deal can be made, then India is always ready to make a deal with developed countries," he said, rejecting the July 9 ultimatum after which the US threatened a 26% tariff on all Indian imports.

This clash unfolds against a massive $129 billion trade backdrop. The US ran a $45.7 billion deficit in 2024, importing $87.4 billion from India while exporting $41.8 billion.

Between April and May this year, India boosted exports to the US by 22%, from $14.17 billion last year to $17.25 billion. The dispute underscores rising tensions as India signals openness to trade deals but stands firm on agriculture and dairy protections.

What's next? A formal WTO panel could take months to form, meaning businesses and markets will be watching this trade tiff closely. For entrepreneurs and global citizens, this clash highlights both the fragility and opportunity of our interconnected economy.

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