India on Friday suggested that it may impose retaliatory tariffs under World Trade Organisation rules in response to American duties on the automobile sector which have been introduced as safeguard measures.

"The proposed suspension of concessions or other obligations would take the form of an increase in tariffs on selected products originating in the United States," stated a WTO notification that is being shared at India's request.

India has informed the WTO’s Council for Trade in Goods that it intends to suspend certain trade concessions and obligations as per specific provisions under the WTO framework.

"This notification is made in connection with safeguard measures extended by the United States of America on imports of automobile parts from India," the statement said.

On March 26 this year, the United States had introduced a safeguard measure in the form of a 25 per cent tariff increase on imports of passenger cars, light trucks, and some automobile parts coming from India.

These duties will be applied starting May 3, 2025 for automobile parts, and they are intended to remain in place for an indefinite period.

Even though these measures have not been officially shared by the United States with the WTO, they are being treated as safeguard actions.

India has argued that the United States' actions do not align with the rules of the General Agreement on Tariffs and Trade 1994 and the Agreement on Safeguards.

Since the consultations that India requested have not happened, "India reserves the right to suspend concessions or other obligations," the notification added.

According to the figures, these safeguard duties would impact Indian exports worth 2.895 billion US dollars each year, and the duties collected on those goods in the US would amount to 723.75 million US dollars.

"Accordingly, India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the United States," the notification said.

This move holds significance because India and the United States are currently working on an interim trade deal to strengthen their economic partnership.

Just last month, India had also taken similar steps in response to US tariffs on steel and aluminium.