India Challenges US On Auto Tariffs In Toughening Trade Stance
India on Tuesday formally challenged the US on higher auto tariffs by raising the matter with the World Trade Organization, signaling a hardening of the South Asian nation's stance on trade talks even as the two countries race to clinch an interim deal before July.
New Delhi informed the WTO that the 25% US tariffs on imports of passenger vehicles and light trucks along with certain auto components are “safeguard measures” — trade restrictions — and affect its exporters, according to a notification. India has sought “consultation” with Washington on the tariffs.
In recent weeks, China's ability to pull through a truce with the US despite defiance and the legal challenges to President Donald Trump's trade tariffs back home have emboldened India to adopt a more assertive tone in its trade talks.
The move on auto tariffs comes amid the US doubling levies on steel and aluminum and coincides with the visit of a US trade team in New Delhi to advance the discussions.
Separately, India has threatened retaliatory duties on some US goods in response to Washington's duties on steel and aluminum.
“India considers that the measure, in its design and effect, constitute safeguard measure within the meaning of Article XIX of GATT 1994 and the Agreement on Safeguards, as it is intended to protect the US domestic industry from increased imports,” the notification on auto tariffs said.
According to WTO rules, if no agreement is reached within 30 days of the start of the consultation, India can suspend equivalent concessions given to the US.
“India reserves all its rights under the Agreement Establishing the World Trade Organization and its Annexes, including the Agreement on Safeguards,” the notification said.
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