India's Proposal for Retaliatory Tariffs Against the US
India has proposed retaliatory tariffs against the United States under the World Trade Organization (WTO) norms in response to the latest American tariffs on automobile imports, classified as safeguard measures.
Key Points
- The US implemented a 25% tariff increase on imports of passenger vehicles, light trucks, and certain auto parts originating from India.
- This measure affects $2.895 billion of Indian imports annually, with an expected duty collection of $723.75 million.
- India's proposed response involves imposing higher tariffs on selected US products to equate the duty collection amount.
- The US imported $89 billion worth of auto parts globally last year, with India accounting for $2.2 billion of these imports.
Context and Background
- This marks the second instance where India has proposed retaliatory tariffs against US goods.
- Previously, in May, India suggested retaliatory duties on certain American products due to US tariffs on steel and aluminum.
- India argues that the US measures are inconsistent with the General Agreement on Trade and Tariff 1994 and the Agreement on Safeguards.
- Consultations sought by India regarding these tariffs are pending, and India reserves the right to suspend concessions or other obligations to the US.
