India takes action against America amidst the ongoing conversation on trade deal, proposal in WTO

India Retaliatory Tariff on USA: India proposed to impose a counter -tariff against the US in the World Trade Organization (WTO) on Friday in response to the tariff imposed on the automobile sector on the automobile sector.

This step has been taken amidst the ongoing conversation with Donald Trump’s government. India had informed the WTO’s Goods Trade Council that in response to the tariff imposed on the basis of national security on automobiles, it would reduce concessions or other obligations on some goods imported from the US.

Why did Trump impose tariffs as a saforgard?

On this proposal of India, WTO has said that the tariffs on selected products produced in the US will increase under the proposed suspension of concessions or other obligations. Let us know that on March 26 this year, the US put 25 percent tariff on automobiles and auto parts coming from India as safeguard, which came into force from 3 May 2025. Trump said that the US has been suffering global trade for decades and the move will promote the manufacturing sector of the country as companies from other countries will be reduced in the US market.

India responded in this style

Let us know that this tariff of Trump includes things like light truck, car, lithium-ion battery, tire, spark plug wire, shock absorber, engine, transmission. However, Trump has not registered these regulations in WTO. Here, India says that GATT (general agreement on trade and fees) is not in line with 1994 and security agreement. Moreover, under Article 12.3, AOS, America has also consulted India in this regard, so India also reserves the right to suspend concessions under Article 8, AOS.

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