Industry News

India-US auto parts tariff tussle: Strategic talks, WTO rejections, and the bigger geopolitical game

Views : 156
Update time : 2025-06-16 16:57:40
As Indian and U.S. officials engaged in closed-door negotiations to finalise trade deals ahead of July’s tariff hikes, a parallel development added friction to an already delicate situation. The Trump administration formally rejected India’s request for consultations at the World Trade Organization (WTO)—its second such attempt—this time over the steep 25 per cent tariff on auto parts.

The juxtaposition of collaborative trade discussions and WTO resistance has triggered a wave of speculation about Washington’s real intentions. While on one hand, Trump has defended its position by citing national security grounds, which exempts the tariff from WTO jurisdiction, on the other, he has expressed his willingness to hold one-on-one discussions with India on the auto component tariffs, albeit with the condition that the talks take place outside the framework of the WTO’s Agreement on Safeguards.

Meanwhile, India has also reserved the right to impose retaliatory tariffs on US automobile imports, according to an official from India’s Commerce Ministry.

Related News
Read More >>
South Africa’s coal exports rise on improved rail performance South Africa’s coal exports rise on improved rail performance
Jan .30.2026
South Africa’s coal exports rise on improved rail performance
Ukrainian industry to drive postwar recovery Ukrainian industry to drive postwar recovery
Jan .30.2026
Ukrainian industry to drive postwar recovery
Hindalco invests Rs 21,000 crore to expand aluminum production in Odisha Hindalco invests Rs 21,000 crore to expand aluminum production in Odisha
Jan .30.2026
Hindalco invests Rs 21,000 crore to expand aluminum production in Odisha
Taiwan’s Yusco largely raises stainless steel prices for Feb as raw material costs soar Taiwan’s Yusco largely raises stainless steel prices for Feb as raw material costs soar
Jan .30.2026
Taiwan’s Yusco largely raises stainless steel prices for Feb as raw material costs soar