India Proposes Retaliatory Tariffs Against US Under WTO Norms

Strategic Insights -

India has proposed retaliatory tariffs against the US under the World Trade Organization (WTO) norms, citing the latest American tariffs on automobile imports as a safeguard measure. The proposed tariffs would affect $2.895 billion imports annually into the US from India, resulting in a duty collection of $723.75 million. This move comes after India sought consultations with the US last month over the 25% tariff increase on imports of passenger vehicles and light trucks, as well as certain auto parts originating in or from India.

Key Takeaways:

  • India has proposed retaliatory tariffs against the US under the WTO norms, citing the latest American tariffs on automobile imports as a safeguard measure.
  • The proposed tariffs would affect $2.895 billion imports annually into the US from India, resulting in a duty collection of $723.75 million.
  • This is the second instance of India proposing retaliatory tariffs on US goods, with the first instance being in May over US tariffs on steel and aluminium.
  • India has maintained that the measures taken by the US are not consistent with the General Agreement on Trade and Tariff 1994 and the agreement on Safeguards.
  • The US imported $89 billion worth of auto parts globally last year, with Mexico accounting for $36 billion, China at $10.1 billion, and India at only $2.2 billion.
  • India has reserved the right to suspend concessions or other obligations to the US in the meantime.

Statistics:

  • $2.895 billion: The amount of imports annually into the US that would be affected by the proposed tariffs.
  • $723.75 million: The duty collection that would result from the proposed tariffs.
  • $89 billion: The total value of auto parts imported by the US globally last year.
  • $36 billion: The value of auto parts imported by the US from Mexico in 2022.
  • $10.1 billion: The value of auto parts imported by the US from China in 2022.
  • $2.2 billion: The value of auto parts imported by the US from India in 2022.

Sources:

  • New Delhi: India on Friday proposed retaliatory tariffs against the US under the World Trade Organization (WTO) norms.
  • WTO: India told the WTO that the safeguard measures would affect $2.895 billion imports annually into the US from India.
  • The Hindu BusinessLine: New Delhi told the WTO that the measures taken by the US are not consistent with the General Agreement on Trade and Tariff 1994 and the agreement on Safeguards.