India takes US auto tariffs to World Trade Organization

India asserts that the US's application of safeguard measures by increasing the 25% tariff on imported passenger cars, light trucks, and some auto components is inconsistent with global trade rules.

India on July 4 submitted a proposal to the World Trade Organization (WTO) to impose reciprocal duties on US tariffs on cars and certain auto components, as the two countries move closer to finalizing an interim trade agreement.

“(India's) proposed suspension of concessions or other obligations will take the form of increased duties on certain products originating in the United States,” the WTO notification said. “Without prejudice to the effective exercise of its right to suspend equivalent obligations under Article 8.2 of the WTO Agreement on Safeguards (AoS), India reserves the right to suspend concessions after the expiry of 30 days from the date of this notification.”

The US imposed a safeguard measure on May 3 by raising tariffs by 25% on imports of passenger cars, light trucks and certain auto components. India asserted that the measures were not properly notified by the US and were inconsistent with global trade rules.

India has stressed that these measures will affect exports of automobiles originating from India worth $2,895 billion per year, with a total additional duty of $723.75 million. As a result, India is expected to suspend trade preferences worth an equivalent value in response.

Last month, India submitted a formal notification to the WTO under the AoS agreement, announcing its intention to suspend the benefits associated with tariffs imposed by the US on steel, aluminum and their derivatives.

India's position is that the tariffs imposed by the US under Section 232 of the US Trade Expansion Act of 1962 are safeguard measures, as defined by the WTO. Therefore, India has the right to suspend the corresponding trade preferences.

All eyes are now on the interim trade deal between the two countries, as a 90-day reprieve on the US plan for country-specific reciprocal tariffs expires on July 9.

The two sides are working to complete the first phase of a comprehensive Bilateral Trade Agreement (BTA) announced by Indian Prime Minister Narendra Modi and US President Donald Trump in February./.

Source: https://baolangson.vn/an-do-dua-van-de-thue-oto-cua-my-len-to-chuc-thuong-mai-the-gioi-5052282.html