Archive · 12 Jun 2025
US Rejects India's WTO Tariff Talks, Citing National Security
The United States has said no to talking with India about the taxes they put on cars and car parts.
The US says these taxes are needed to protect the country's security.
They are using a special law that allows them to do this.
The US already has a deal with the UK where some car taxes are lower.
India hopes to have a similar deal soon.
The US rejected India's request for WTO consultations on tariffs for automobiles and parts.
The US imposed tariffs on autos and parts, citing national security concerns.
Tariffs were imposed under Section 232 of the Trade Act of 1974.
The US maintains these actions under the essential security exception in Article XXI of the GATT 1994.
The US has relaxed tariffs for the UK under a recent trade agreement.
- Who
- The United States and India.
- What
- US rejection of India's WTO request for tariff consultations on automobiles and parts.
- When
- The tariffs were imposed from April 3.
- Where
- In the US, impacting trade with India.
- Why
- The US cites national security concerns as the reason for imposing the tariffs.
India's Position
US Position
Consultation Request
India's Position
India requested consultations under WTO agreements regarding tariffs.
US Position
The US rejected the request, citing national security exceptions.
- Tariff Rate on Autos
- 25%
- Tariff Imposition Basis
- Section 232 of the Trade Act of 1974
- India's Auto Exports to US (2024)
- $8.9 million
- India's Auto Component Exports to US (2024)
- $2.2 billion
