India tells WTO it could impose retaliatory tariffs price $724 million on U.S. imports

The transfer comes at a time when India and the U.S. are in superior levels of finalising an preliminary mini-trade deal. India’s negotiation crew, led by Special Secretary within the Ministry of Commerce and Industry Rajesh Agarwal, returned to India from the U.S. on Monday.  

Also learn: Trump says ‘very massive’ commerce deal arising with India

The U.S, on March 26, 2025, imposed a tariff enhance of 25% advert valorem on passenger autos, gentle vehicles, and sure vehicle elements originating in India. 

‘Violates WTO pacts’

In a communication to the WTO dated July 3, India mentioned that regardless that the U.S.’ measures had not been notified to the WTO, they have been in essence safeguard measures. It added that India’s place on the matter was that the U.S. tariffs weren’t in accordance with the General Agreement on Tariffs and Trade 1994, the settlement on the core of the WTO, and the Agreement on Safeguards (AoS). 

“As consultations offered for below Article 12.3, AoS haven’t taken place, India reserves the appropriate to droop concessions or different obligations below Article 8, AoS which might be considerably equal to the antagonistic results of the measure to India’s commerce,” India mentioned in its communication.

In different phrases, because the U.S. had not carried out consultations with India over the difficulty, India reserves the appropriate to droop concessions offered to the U.S. equalling the quantity that the U.S. tariffs would influence India’s exports to the U.S. 

“The proposed suspension of concessions or different obligations would take the type of a rise in tariffs on chosen merchandise originating within the United States,” India mentioned. 

It added that the U.S.’ measures would have an effect on $2,895 million price of imports from India yearly, on which the responsibility assortment could be $723.75 million. “Accordingly, India’s proposed suspension of concessions would lead to an equal quantity of responsibility collected from merchandise originating within the United States,” India mentioned.

This isn’t the primary time this 12 months India has knowledgeable the WTO of its proposal to retaliate in opposition to U.S. tariffs. The Hindu reported in May that India had issued the same notification to the WTO concerning the U.S. tariffs on metal and aluminium. The retaliation on these, if imposed, would quantity to $1.91 billion.