India on Friday proposed to impose retaliatory tariffs against America in the World Trade Organization (WTO) in response to the tariff imposed by America on the automobile sector on the basis of national security.
This step has been taken amid ongoing talks on a trade deal with DonaldTrump’sgovernment.India had informed the WTO’s Goods Trade Council that in response to the tariff imposed on automobiles on the basis of national security, it would reduce concessions or other obligations on some goods imported from America.
Why did trump impose tariff as a safeguard?
On this proposal of India, the WTO has said, under the proposed suspension of concessions or other obligations, tariffs will increase on select products manufactured in America.Let us tell you that on march 26 this year, the US imposed a tariff of 25 percent as a safeguard measure on automobiles and auto parts coming from india, which came into effect from May 3, 2025.Trump said that America has been suffering losses in global trade for decades and this step will boost the country’s manufacturing sector because there will be less competition from companies of other countries in the American market.
India responded in this manner
Let us tell you that things like light trucks, cars, lithium-ion batteries, tires, spark plug wires, shock absorbers, engines, transmissions have been included in Trump’s tariff. However, trump has not registered these regulations in the WTO. On the other hand, India says that these are not in accordance with GATT (General Agreement on Trade and Tariffs) 1994 and the security agreement. Moreover, America has also consulted with india in this regard under Article 12.3, AoS, so india also reserves the right to suspend concessions under Article 8, AoS.