India Proposes Retaliatory Tariffs on US Goods at WTO Amid Trade Talks

India has proposed retaliatory tariffs on selected U.S. goods in response to Washington's 25 percent safeguard tariffs on Indian passenger vehicles, light trucks, and automobile parts, which took effect in May 2025. India argues that these U.S. safeguard measures violate the General Agreement on Tariffs and Trade (GATT) 1994 and the WTO Agreement on Safeguards, noting that the U.S. has not formally notified the WTO of these tariffs. As consultations requested by India have not occurred, New Delhi has invoked its right under WTO rules to suspend equivalent concessions on U.S. imports valued at approximately $2.9 billion annually, aiming to collect an equivalent amount of duties ($723.75 million) on American products. This move signals a tougher stance from India despite ongoing negotiations for an interim trade deal with the Trump administration. India has submitted notifications to the WTO's Council for Trade in Goods outlining its plans to suspend concessions or obligations, reserving the right to modify its list of targeted products. The dispute underscores rising trade tensions between the two countries amid efforts to strengthen bilateral trade ties.