ECONOMY
India moves WTO for talks with US over tariffs on auto components
- IBJ Bureau
- Jun 04, 2025
India on Tuesday sought consultations with the US under the World Trade Organization’s (WTO) safeguard agreement over American tariffs on auto components.
This move comes shortly after India reserved the right to impose retaliatory duties on select US products in response to American tariffs on steel and aluminium.
On March 26, 2025, the US had adopted a 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 originating in or from India, a communication sent by India to the WTO said.
The measure on automobile parts applies from May 3, 2025, and for an unlimited duration.
“India considers that the measure, in its design and effect, constitutes a safeguard measure within the meaning of… GATT (General Agreement on Tariffs and Trade) 1994 and the Agreement on Safeguards, as it is intended to protect the US domestic industry from increased imports,” it said.
It added that the US had failed to notify the WTO committee on safeguards under a provision of the Agreement on Safeguards on taking a decision to apply the safeguard measure.
“Accordingly, as an affected member with significant export interest to the United States in the products concerned, India requests consultations with the United States,” it said.
Report By
View Reporter News