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International trade

India Notifies WTO of Plans to Retaliate Against US-Imposed 25% Tariffs on Auto Imports

Strategic Insights

— 1 min read

India has sought consultations with the US on the additional tariffs imposed on automobile imports and has now notified the World Trade Organisation (WTO) of its intention to retaliate by matching the US's tariff collection, which could impact $2.89 billion in exports. The proposed duties mirror past disputes on steel and aluminium, as India reserves the right to match US collections while negotiations on a Bilateral Trade Agreement (BTA) continue. India's notification comes after the US rejected India's demand to notify the WTO under the Agreement on Safeguards, citing national security grounds.

Key Takeaways:

  • India has notified the WTO of its intention to retaliate against the US's 25% tariffs on automobile imports, which could impact $2.89 billion in exports.
  • The proposed duties mirror past disputes on steel and aluminium, where India imposed a 50% duty on imports, affecting $7.6 billion imports into the US.
  • India reserves the right to match the US's tariff collection, which could result in a similar amount of duties being collected from the US.
  • India's retaliation would be designed to collect the same amount of duties on imports from the US, with the option to adjust products and tariff rates.
  • India has previously retaliated against US tariffs on steel and aluminium in 2019 by imposing additional tariffs on imports from the US of 21 products, including almonds, apples, and chickpeas.
  • Both countries have agreed to end all WTO disputes, including steel and aluminium tariffs, through negotiations in 2023.

Statistics:

  • India's exports affected by the US's 25% tariffs on automobile imports: $2.89 billion
  • Duty collected by the US on Indian auto imports: $723.75 million
  • Impact of US tariffs on Indian exports in future: Potential collection of over $723.75 million
  • Previous rate of duty on steel and aluminium: 50%
  • Potential duty collection from US on steel and aluminium imports: Over $3.5 billion
  • Number of products on which India imposed additional tariffs in 2019: 21
  • Value of Indian exports affected by US tariffs on almonds, apples, and chickpeas: Not specified

Sources:

  • IE Online Media Services Pvt. Ltd. (2025)
  • Contify.com (2025)
  • World Trade Organisation (WTO) (no date provided)

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