India has proposed the imposition of retaliatory tariffs on US imports in response to a 25 per cent safeguard duty unilaterally imposed by the United States on Indian auto parts, citing violations of World Trade Organization (WTO) obligations. In a formal notification to the WTO Council for Trade in Goods, India expressed its intention to suspend certain trade concessions and enforce countermeasures under the WTO Safeguards Agreement. According to the WTO communication, India stated: “The proposed suspension of concessions or other obligations would take the form of an increase in tariffs on selected products originating in the US.” The US action, which took effect on 3 May 2025, levied an ad valorem tariff of 25 per cent on imports of passenger vehicles, light trucks, and specific auto components from India. The measures have been described by India as safeguard actions, although the US has not formally notified the WTO as required under multilateral rules. India contends that these duties are inconsistent with the General Agreement on Tariffs and Trade (GATT) 1994 and the Agreement on Safeguards, particularly in the absence of prior consultation. Despite India’s request, bilateral discussions on the matter have not been held, prompting New Delhi to initiate countermeasures. The Indian government estimates that these US tariffs affect $2.895 billion worth of Indian exports annually, resulting in approximately $723.8 million in additional duty collections on Indian-origin goods. India now proposes to impose equivalent retaliatory duties on US exports in order to neutralise the trade impact and uphold WTO parity. To ensure compliance and flexibility, India has also reserved the right to adjust the list of targeted US goods and revise the proposed tariff rates in accordance with developments. The notification underscores that these actions are being undertaken under WTO-sanctioned procedures to preserve India’s trade rights and prevent further unilateral economic harm. This latest escalation highlights mounting trade tensions between New Delhi and Washington. While India has historically sought dialogue within WTO frameworks to resolve disputes, analysts view this move as a more assertive stance against protectionist policies introduced under the Trump administration. The United States' move to raise auto part tariffs aligns with its broader industrial policy favouring domestic manufacturing and onshoring — a recurring theme in President Trump’s economic agenda. However, trade experts warn that such measures, when imposed without due process, risk violating multilateral rules and undermining global trade stability. As India prepares its list of US-origin goods to face potential duties, businesses across sectors are watching closely for downstream effects. The retaliatory duties, once finalised, could impact agricultural products, industrial machinery, and consumer goods, similar to past trade disputes. With no consultations scheduled and the WTO Dispute Settlement Mechanism still in a transitional phase, India’s calibrated retaliation marks a significant moment in bilateral trade diplomacy and underlines the Global South's increasing willingness to push back against unilateral trade actions.