India Proposes Retaliatory Tariffs Against the US Over Automotive Duties

According to foreign media reports, the Indian government has recently submitted a proposal to the World Trade Organization (WTO) regarding retaliatory tariffs against the US. The proposal states that the US's 25% tariffs on automobiles and some auto parts will affect India's exports worth $2.89 billion. The statement noted, 'India reserves the right to terminate concessions or other obligations granted to the US, with the intensity corresponding to the adverse impact of US tariff policies on Indian trade.' The tariffs imposed by the US amount to $725 million, and India plans to impose equivalent tariffs on 'products originating from the US.' However, India has not yet specified the tariff rates or the range of taxable goods. India is attempting to reach a trade agreement with the US before the July 9 deadline set by President Trump for reciprocal tariff exemptions. Trump previously threatened that if an agreement was not reached, a 26% tariff would be imposed on all goods imported from India. Despite India's willingness to lower high tariff barriers on US goods, the Indian government has not made concessions on agricultural and dairy market access, which are key concerns for the US. However, recent news indicates that the US and India may finalize a 'small trade agreement' within the next 24 to 48 hours. Sources reveal that negotiations for this limited agreement have been completed, which is expected to clear the way for broader bilateral trade talks. Reports suggest that the average tariff under this small trade agreement may be around 10%. Negotiations for a comprehensive Bilateral Trade Agreement (BTA) between the two countries are expected to start after July 9. Meanwhile, US Treasury Secretary Scott Bessent stated that the US is close to finalizing multiple trade agreements before the July 9 deadline and significant announcements are expected in the coming days. Bessent mentioned on CNN's 'State of the Union' program that the Trump administration will also send letters to 100 countries with which the US has limited trade, notifying them that high tariff rates, originally set to take effect on April 2 and postponed until July 9, will be reinstated. Bessent stated, 'President Trump will communicate with some trade partners to indicate that if negotiations do not progress, tariffs will revert to the levels set on April 2 starting August 1. Therefore, a series of trade agreements are expected to be finalized in the short term.'