India takes big step against US as talks over trade deal continue, Modi govt put this…

India has informed the World Trade Organisation of its plan to impose retaliatory tariffs on US goods. This action is a response to the US raising tariffs on certain Indian-made automobiles and auto parts.

Jul 5, 2025 - 21:30
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India takes big step against US as talks over trade deal continue, Modi govt put this…

India Retaliatory Tariff on USA: Taking a big step, the Indian authorities on Friday proposed retaliatory tariffs in opposition to the US at the World Substitute Organisation (WTO). The proposal used to be made in accordance with American tariffs on the automobile sector on national security grounds.

India-US Substitute Deal

The switch has reach at a time when both nations are in the advanced phases of inking an preliminary mini-alternate deal. New Delhi had suggested the WTO’s Goods Substitute Council that it the country will reduce concessions or other obligations on some items imported from the US in accordance with tariffs imposed on autos on the root of national security.

New Delhi’s negotiation team, which used to be led by Particular Secretary in the Ministry of Commerce and Industry Rajesh Agarwal on Monday returned to India from US.

Why Did Trump Impose Tariffs As A Safeguard?

On India’s proposal, WTO has said that under the proposed suspension of concessions or other obligations, tariffs on make a selection merchandise which are manufactured in The United States will amplify.

Notably, on March 26, The United States had imposed a 25 percent tariff on autos and auto parts coming from India as a safeguard measure. The tariff came into impact from May 3 this year.

Trump had said that his country has been struggling losses in world alternate for loads of years. He states that this step will toughen country’s manufacturing sector as there shall be much less competitors from companies of other nations in the US market.

What Became once India’s Retort?

The Trump administration imposed tariffs on diversified automotive and connected items, alongside with gentle trucks, autos, and an limitless different of parts. These tariffs, then over again, weren't registered with the World Substitute Group (WTO). India contends that these tariffs violate the Neatly-liked Settlement on Tariffs and Substitute (GATT) 1994 and reward security agreements. Following consultations under Article 12.3 of the WTO’s Settlement on Safeguards, India has reserved the most effective to retaliate by suspending concessions under Article 8.

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