New Delhi has escalated its trade dispute with Washington by filing a formal complaint with the World Trade Organization (WTO) over recently imposed US tariffs on automotive imports. Notably, this is a significant shift in India's diplomatic approach toward US trade policies, says a report by Business Standard.
The complaint, submitted on June 2, contests the 25 per cent tariffs that the US implemented on passenger cars, light commercial vehicles, and selected automotive components. Indian trade officials argue these measures represent safeguard actions designed to shield American manufacturers from what they perceive as excessive foreign competition, the report added.
According to the filing, these trade restrictions took effect on May 3, 2025, but were implemented without the mandatory advance notice to the WTO's Safeguards Committee, potentially violating international trade regulations under Article 12.1(c) of the Safeguards Agreement.