India Threatens WTO Retaliation Over U.S. Auto Tariffs

Written by Aftab Ahmed and Aditi Shah

NEW DELHI () - New Delhi has suggested countermeasures against the U.S. at the World Trade Organization, stating that Washington's 25% tax on vehicles and certain automotive components would impact $2.89 billion worth of Indian exports, as per an official statement.

The statement mentioned that 'India retains the right to halt benefits or other responsibilities... which are significantly similar to the negative impacts of the action on India's commerce.'

As per the notice, the tax gathered by the U.S. is expected to total $725 million, with New Delhi planning to levy an "equal level of tax on goods coming from the United States."

India did not indicate the specific tax percentage or the particular products subject to import taxes.

India is seeking to finalize a trade agreement with Washington ahead of a July 9 deadline established by former U.S. President Donald Trump, who warned that a 26% tax on all Indian imports would take effect afterward.

India has indicated its willingness to reduce its elevated customs duties for the U.S., although it hasn't agreed to Washington's push for greater access in the agricultural and dairy industries.

(Reported by Aftab Ahmed and Aditi Shah. Written by Sakshi Dayal. Edited by Mark Potter, Aidan Lewis)