Core Viewpoint - India has formally challenged the U.S. automotive tariffs at the World Trade Organization (WTO), indicating a tougher trade stance amid ongoing bilateral trade negotiations with the U.S. [1][3] Group 1: Trade Challenge - India has submitted a complaint to the WTO, claiming that the 25% tariffs on imported passenger cars, light trucks, and certain auto parts constitute "safeguard measures" that adversely affect its exporters [1][6] - The timing of India's challenge coincides with a visit from the U.S. trade team to New Delhi, aimed at advancing bilateral trade discussions [3][6] Group 2: U.S. Tariff Policy - The U.S. has labeled India's tariffs as "very unfair and high," and recently increased tariffs on steel and aluminum products from 25% to 50%, effective June 4, 2025 [3][6] - Following the announcement of the increased tariffs, Indian stock markets saw a slight uptick, with the NIFTY and SENSEX indices rising approximately 0.3% [3] Group 3: India's Trade Negotiation Strategy - India has proposed a "zero-for-zero" tariff arrangement for specific goods, including steel, auto parts, and pharmaceuticals, based on reciprocity and limited to a certain quantity of imports [3][6] - The complaint reserves all rights under the WTO agreements, allowing India to suspend equivalent trade concessions to the U.S. if no agreement is reached within 30 days of consultations [7]