India has formally requested consultations with the United States under the World Trade Organisation’s (WTO) Agreement on Safeguards, challenging recent American tariffs imposed on automobile parts.
The move follows India’s earlier decision to reserve the right to impose retaliatory duties on select US goods in response to Washington’s tariffs on steel and aluminium.
According to a communication sent by India to the WTO, the US on March 26, 2025, adopted a measure increasing tariffs by 25 per cent ad valorem on imports of passenger vehicles, light trucks, and certain auto components originating in or from India. These duties came into effect on May 3, 2025, and have been applied for an indefinite period, PTI reported.
"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," the communication stated.
India further noted that the United States failed to notify the WTO Committee on Safeguards about the decision to apply such measures, as required under the provisions of the Agreement on Safeguards (AoS).
"Accordingly, as an affected Member with significant export interest to the United States in the products concerned, India requests consultations with the United States," the communication added.
India said it seeks to exchange views on the measure and its implications during the consultations.
"India looks forward to receiving a prompt reply to this request from the United States and to setting a mutually convenient date and venue for the... consultations," it said.
India also reserved all its rights under the agreement establishing the WTO.
In 2024, the United States imported auto parts worth USD 89 billion globally. Mexico was the top supplier at USD 36 billion, followed by China at USD 10.1 billion. India accounted for USD 2.2 billion of those imports.
The move follows India’s earlier decision to reserve the right to impose retaliatory duties on select US goods in response to Washington’s tariffs on steel and aluminium.
According to a communication sent by India to the WTO, the US on March 26, 2025, adopted a measure increasing tariffs by 25 per cent ad valorem on imports of passenger vehicles, light trucks, and certain auto components originating in or from India. These duties came into effect on May 3, 2025, and have been applied for an indefinite period, PTI reported.
"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," the communication stated.
India further noted that the United States failed to notify the WTO Committee on Safeguards about the decision to apply such measures, as required under the provisions of the Agreement on Safeguards (AoS).
"Accordingly, as an affected Member with significant export interest to the United States in the products concerned, India requests consultations with the United States," the communication added.
India said it seeks to exchange views on the measure and its implications during the consultations.
"India looks forward to receiving a prompt reply to this request from the United States and to setting a mutually convenient date and venue for the... consultations," it said.
India also reserved all its rights under the agreement establishing the WTO.
In 2024, the United States imported auto parts worth USD 89 billion globally. Mexico was the top supplier at USD 36 billion, followed by China at USD 10.1 billion. India accounted for USD 2.2 billion of those imports.
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