India proposes retaliatory duties at WTO over U.S. auto tariffs

New Delhi has proposed retaliatory duties against the U.S. at the World Trade Organization (WTO), saying Washington's 25 percent tariff on automobiles and some auto parts would affect $2.89 billion of India's exports, according to an official notification.

"India reserves the right to suspend concessions or other obligations ... that are substantially equivalent to the adverse effects of the measure to India's trade," the statement said.

According to the notification, the duty collected by the U.S. would amount to $725 million, and New Delhi will impose an "equivalent amount of duty collected from products originating in the United States."

India did not specify the tariff rate or which goods it would levy duties on.

India has signaled it is ready to slash its high tariff rates for the U.S. but has not conceded on Washington's demands to open up its agriculture and dairy sectors.

It also dismissed the July 9 deadline set by U.S. President Donald Trump, after which he has threatened to impose a 26 percent tariff on all imported Indian goods.

Indian Trade Minister Piyush Goyal said on Friday that India is ready to make trade deals in the national interest, but not just to meet deadlines.

"National interest will always be supreme. Keeping that in mind, if a good deal can be made, then India is always ready to make a deal with developed countries," Goyal said on Friday when asked whether a deal could be reached with the U.S. before the deadline.

"India never does any trade deal on the basis of deadline or time frame … we will accept it only when it is completely finalized and in the national interest."

According to the Office of the United States Trade Representative, bilateral trade between India and the U.S. totaled approximately $129 billion in 2024. U.S. exports to India reached $41.8 billion, while imports from India amounted to $87.4 billion, leaving the U.S. with a trade deficit of $45.7 billion. Between April and May this year, India's exports to the U.S. rose to $17.25 billion, up from $14.17 billion during the same period last year.

(With input from Reuters)