According to Reuters, India notified the World Trade Organization on the 4th that it plans to impose retaliatory tariffs on the United States due to the impact of U.S. tariffs on automobiles and parts on Indian exports.
According to India's statement, the 25% tariff imposed by the United States on the aforementioned products will affect $2.89 billion worth of Indian exports. The tariff revenue from this U.S. measure will amount to $725 million, and India will impose an equivalent tariff on "products originating from the United States."
The report stated that India did not specify the proposed tariff rates or product categories.
Since the start of trade negotiations between the United States and India, officials from both sides have consistently claimed that India could be one of the "first countries to reach an agreement with the United States," but the negotiations quickly hit a deadlock without making progress.
July 9 is the deadline for the United States to suspend the so-called "reciprocal tariffs" for 90 days. If India fails to reach a trade agreement with the United States before the deadline, it will face a 26% tariff.
Reuters reported that on July 4, India's Minister of Commerce, Piyush Goyal, told reporters that India will conduct trade agreement negotiations in accordance with national interests and will not be bound by the so-called U.S. deadline.
India has expressed willingness to reduce high tariffs on the United States, but has not agreed to the U.S. request to open up the agricultural and dairy markets.
Earlier, India's Finance Minister Nirmala Sitharaman stated that India hopes to reach a "big, good, and beautiful" trade agreement with the United States, but agriculture and dairy products are two "red lines" in the negotiations.
According to data from the Office of the U.S. Trade Representative, bilateral trade between India and the United States reached approximately $129 billion in 2024. U.S. exports to India totaled $41.8 billion, while imports from India amounted to $87.4 billion, resulting in a trade deficit of $45.7 billion. In April and May of this year, India's exports to the United States increased from $14.17 billion to $17.25 billion compared to the same period last year.
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