US Turns Down India's WTO Challenge on Auto Duties

This came just after the US brushed aside India's case on steel and aluminum duties

- Dhirendra Kumar

The US has rejected India's second attempt within days to challenge American tariffs at the World Trade Organization (WTO)—this time over automobiles and auto parts. Washington turned down India's 'notice for consultations' on the US's 25% tariff on auto components, saying the auto duties were imposed on national security grounds and are therefore not subject to multilateral trade rules, as per the WTO.

"Nonetheless, we are open to discuss this or any other issue with India. Any discussions regarding the tariffs would not be under the Agreement on Safeguards and would be without prejudice to our view that the tariffs are not safeguard measures," the US said in its submission to the WTO.

This comes just days after the US brushed aside India's long-pending case on steel and aluminum duties. To be sure, as with that dispute, New Delhi reserves its right to impose retaliatory duties on US automobile tariffs, an official at India's commerce ministry said, requesting anonymity.