New Delhi — India has announced plans to impose retaliatory duties against the United States at the World Trade Organization (WTO) in response to Washington’s 25 percent tariffs on automobiles and certain auto parts. According to an official notification, India’s move comes as the U.S. tariffs are expected to affect $2.89 billion worth of Indian exports.
“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. The duty collected by the U.S. would amount to $725 million, and India intends to impose an equivalent amount of duties on products originating from the United States.
While New Delhi did not specify the exact tariff rates or the specific goods that would be targeted, the proposal signifies escalating trade tensions between the two nations. India has indicated a willingness to reduce its high tariff rates for the U.S. but remains firm on not opening up its agriculture and dairy sectors.
Furthermore, India has dismissed a deadline reportedly set by U.S. President Joe Biden, who has threatened to impose increased tariffs on imported Indian goods if a deal is not reached. Indian Trade Minister Piyush Goyal emphasized that India is open to trade agreements that serve the national interest but will not be pressured by deadlines.
“National interest will always be supreme. Keeping that in mind, if a good deal can be made, then India is always ready to make a deal with developed countries,” Goyal stated. “India never does any trade deal on the basis of deadline or time frame… we will accept it only when it is completely finalized and in the national interest.”
According to the Office of the United States Trade Representative, bilateral trade between India and the U.S. totaled approximately $129 billion in 2022. U.S. exports to India reached $41.8 billion, while imports from India amounted to $87.4 billion, resulting in a U.S. trade deficit of $45.7 billion. Between April and May this year, India’s exports to the U.S. rose to $17.25 billion, up from $14.17 billion during the same period last year.
The proposed retaliatory measures highlight the growing trade disputes between two of the world’s largest economies, with potential implications for global trade dynamics.
