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India proposes retaliatory duties at WTO against US tariffs on autos

India proposes retaliatory duties at WTO against US tariffs on autos

Maruti Suzuki Celerio cars are parked beside an in-plant railway siding at Maruti Suzuki's plant in Manesar, Haryana, India, on Jun 17, 2025. (File photo: Reuters/Bhawika Chhabra)

NEW DELHI: New Delhi has proposed retaliatory duties against the United States at the World Trade Organization (WTO), saying Washington's 25 per cent tariff on automobiles and some auto parts would affect US$2.89 billion of India's exports, according to an official notification.

"India reserves the right to suspend concessions or other obligations ... that are substantially equivalent to the adverse effects of the measure to India's trade," the statement said.

According to the notification, the duty collected by the US would amount to US$725 million, and New Delhi will impose an "equivalent amount of duty collected from products originating in the US".

India did not specify the tariff rate or which goods it would levy duties on.

India is trying to clinch a trade deal with Washington before a Jul 9 deadline set by US President Donald Trump, after which he has threatened to impose a 26 per cent tariff on all imported Indian goods.

India has signalled it is ready to slash its high tariff rates for the US but has not conceded on Washington's demands for opening up the agriculture and dairy sectors. 

Source: Reuters/rl
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