India Moves WTO Against US Auto Tariffs, Proposes Retaliatory Duties Worth $725 Million

India has approached the World Trade Organisation (WTO) proposing retaliatory duties on the US, citing that Washington’s 25 per cent tariff on automobiles and some auto parts would hit $2.89 billion worth of Indian 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, Nikkei Asia reported.

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

Details on the tariff rate or targeted goods were not disclosed by India.

India is aiming to resolve the trade standoff with Washington ahead of the 9 July deadline, after which President Trump has warned of a 26 per cent tariff on all Indian imports.

While India has shown willingness to lower its steep tariff structure for US goods, it remains firm on not yielding to US demands to open up agriculture and dairy sectors.

This comes as Union Minister Piyush Goyal on Friday (4 July) made it clear that India will not rush into trade agreements simply to meet deadlines, stating that any deal must be mutually beneficial.

Goyal emphasised that India’s stance in approaching global trade discussions remains firm and principled.

In the interim deal, India is aiming to secure broader market access for its labour-driven exports, while the US is pressing for lower tariffs on its farm produce.

"It should be a win-win agreement, and only when India's interests are safeguarded - national interest will always be supreme - and keeping that in mind, if a good deal is formed, India is always ready to engage with developed countries," Goyal said on the sidelines of the 16th Toy Biz B2B expo in Delhi.

"Discussions are ongoing with various countries -- be it the European Union, New Zealand, Oman, the US, Chile, or Peru. Talks about agreements are underway with many nations," he said.

According to Goyal, India only accepts free trade agreements that offer mutual benefit and will not rush into trade deals based on deadlines.

"A free-trade agreement is only possible when there is mutual benefit. India never enters into trade deals based on deadlines or time pressure. A deal is accepted only when it is fully matured, well-negotiated, and in the national interest," Goyal added.

Also Read: No Time Pressure, Only Mutual Benefit: Goyal Outlines India’s Stand On Global Trade Agreements Amid Talks With US