India has proposed to impose retaliatory duties on some American products at the World Trade Organization (WTO). This move comes in response to the U.S. imposing a 25% import tariff on certain vehicles and auto parts.
According to an official statement, India considers the U.S. tariffs to be safeguard measures—a type of trade protection used during import surges. India argues that these measures unfairly hurt its auto parts and vehicle exports.
The Indian government says that the U.S. action has affected $2.89 billion worth of Indian exports.
In response, India has formally notified the WTO that it reserves the right to suspend trade concessions and other obligations under global trade rules.
India has also said that it may increase import duties on selected American products. These higher tariffs could be applied 30 days after July 4, depending on further developments.
This step marks a serious escalation in trade tensions between the two countries.
India Focuses on Fair Trade and Boosting Toy Manufacturing
India’s Trade Minister said the government is working on a new scheme to support toy manufacturing in the country. He also mentioned that India is in talks with several nations to explore trade agreements. However, he clarified that free trade deals will only be signed if they benefit both sides. He added that India does not rush into trade deals to meet deadlines, but always puts the country’s national interest first.
A trade official added that negotiations with the U.S. are ongoing, and the Indian team has recently returned from talks. He emphasized that the talks are not dependent on timelines, and India is seeking long-term trade preferences that support its economic interests.
