US Rejects India’s WTO Challenge On Auto Tariffs: Says ‘No Basis’ For Safeguard Claims

US tells WTO its auto tariffs are not safeguards, rejecting India’s consultation request. India may retaliate, key trade tensions escalate

The measure on automobile parts applies from May 3, 2025, and for an unlimited duration

Source : Facebook/@worldtradeorganization

The US has told the World Trade Organisation (WTO) that the tariffs on automobiles and auto components are not safeguard measures and there is "no basis" for India to seek consultations on the matter.

Earlier this month, India sought consultations with the US under the WTO safeguard agreement over American tariffs on auto and auto components.

"The United States is not maintaining these actions pursuant to the safeguards / emergency action provision in Article XIX of the GATT (General Agreement on Trade and Tariffs) 1994 and the Agreement on Safeguards.

"These actions are not safeguard measures and, therefore, there is no basis to conduct consultations under the Agreement on Safeguards with respect to these measures," according to a WTO communication shared by the US on India's request.

Though the US is open to discuss the issues with India, it said.

However, any discussions regarding the tariffs would not be under the Agreement on Safeguards and would be without prejudice to our view that the tariffs are not safeguard measures.

India's move comes after India reserved the right to impose retaliatory duties on select US products in response to American tariffs on steel and aluminium.

On March 26, 2025, the US adopted a measure in the form of a tariff increase of 25 per cent ad valorem on imports of passenger vehicles and light trucks, and on certain automobile parts originating in or from India, a communication sent by India to the WTO has said.

The measure on automobile parts applies from May 3, 2025, and for an unlimited duration.

India has stated that it considers the measure, in its design and effect, a safeguard measure.

The US imported USD 89 billion worth of auto parts globally last year, with Mexico accounting for USD 36 billion, China for USD 10.1 billion, and India for just USD 2.2 billion. 

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)