India may levy $724 million retaliatory tariffs on U.S. imports in response to increased U.S. tariffs.
The Indian government has informed the World Trade Organization (WTO) of its intention to impose retaliatory tariffs of approximately $724 million on U.S. imports. This move is a response to the U.S.'s 25% ad valorem tariff increase on passenger vehicles, light trucks, and certain automobile parts from India, imposed on March 26. India argues that the U.S. measures, though not notified to the WTO, are safeguard measures inconsistent with the General Agreement on Tariffs and Trade 1994 and the Agreement on Safeguards (AoS). India reserves the right to suspend concessions under Article 8, AoS, due to lack of consultations.
Key Points
- India plans to impose retaliatory tariffs on U.S. imports, citing U.S. tariffs on Indian automobiles.
- The U.S. had imposed a 25% ad valorem tariff on certain Indian automobile parts.
- India considers the U.S. tariffs inconsistent with WTO agreements, specifically GATT 1994 and AoS.
- The move comes as India and the U.S. are negotiating a mini-trade deal.
Exam Facts
- India's proposed retaliatory tariffs amount to $724 million.
- The U.S. imposed a 25% ad valorem tariff on March 26.
- WTO agreements cited include GATT 1994 and Agreement on Safeguards (AoS).
- India reserves rights under Article 8, AoS.
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