India Retaliates Against Unfair US Tariffs — A Bold WTO Move

Sat Jul 5, 2025

🇮🇳⚖️ India Retaliates Against Unfair US Tariffs — A Bold WTO Move

India has formally informed the World Trade Organization (WTO) of its intent to impose reciprocal tariffs on US imports, marking a strong response to the tariff war initiated by the US under the Trump administration.

Earlier this year, the US levied steep 26% tariffs on specific automobile exports from India, disproportionately affecting our MSME sector — the backbone of our auto components industry.

📉 India estimates a revenue loss of $724 million due to these unilateral US tariffs. More concerning, the US did not follow WTO norms, skipping both consultations and prior notifications — a clear breach of the General Agreement on Tariffs and Trade (GATT) and the WTO’s Agreement on Safeguards (Article 12.3 & Article 8).

💼 In response, India is invoking WTO safeguard provisions and will now levy counter-tariffs to recover the losses — a move that underscores India’s resolve to defend its trade interests.

However, this tit-for-tat could further complicate ongoing trade talks between the two nations. With a $100+ billion bilateral trade relationship and a critical deadline of July 9 to conclude a mini trade deal, the next few days are crucial.

As India pushes for fairness and adherence to global trade rules, this move is not just about tariffs—it's about economic sovereignty, rules-based trade, and protecting domestic industries from unfair practices.

📌 Will this calculated step help India gain leverage in final negotiations? The world is watching.

#IndiaUSRelations #TradeWar #WTO #ReciprocalTariffs #MakeInIndia #MSME #AutoIndustry #EconomicPolicy #GlobalTrade #Modinomics #BilateralTrade #IndoUS #TradeNegotiations #WTOCompliance #ForeignPolicy

KARTHICK CV
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