India Takes a Firm Step at WTO in Response to US Import Duties
India has told the World Trade Organization (WTO) that it might bring in retaliatory duties on some American products. This is because the United States imposed 25% import tariffs on automobiles and auto parts, along with earlier duties on steel and aluminium.
What India Said at the WTO
- India believes these duties are actually safeguard measures that hurt Indian exports.
- It has officially reserved its right to respond by imposing tariffs on US goods.
- India has requested consultations with the US under WTO rules, which is a way to talk and try to settle the matter.
Background of the Dispute
- On March 12, 2025, the US began charging 25% tariffs on cars and car parts entering its country.
- India feels this decision violates WTO rules because there was no proper consultation before the tariffs were imposed.
- Earlier, in 2018, India had raised tariffs on items like almonds and walnuts when the US increased import duties on steel and aluminium.
India’s Concerns
- India says the tariffs hurt Indian companies that export cars and car parts to the US.
- Officials also said this issue may be discussed in the India-US bilateral trade talks, which are still ongoing.
- India wants to make sure that its national interest and export sectors are protected.
What the US Says
- The US argues these tariffs are for national security reasons, not trade protection.
- It claims that because these are not regular trade duties, India shouldn’t be allowed to take counteraction through the WTO.
- So far, the US has not agreed that it broke any rules.
Impact on India-US Trade Talks
The result of this WTO issue could affect how smooth or difficult those talks become.
Both countries are in talks to finalise a bigger trade agreement later this year.
India is hoping to double its trade with the US to $500 billion by 2030.