New Delhi on Friday proposed to impose retaliatory tariffs against the United States under the norms of the World Trade Organization over Washington’s so-called safeguard duties on automobile imports from India, PTI reported.

“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,” said a WTO notification that was circulated at India’s request.

New Delhi notified the international organisation’s Council for Trade in Goods of its proposed suspension of concessions and other obligations under WTO provisions, the news agency reported.

On March 26, Washington had decided to levy a 25% tariff, in proportion to the estimated value of the goods, on imports of passenger vehicles, light trucks and select automobile parts from India. The duties were to take effect on May 3, The Indian Express reported.

New Delhi has argued that the measures by Washington were not consistent with the 1994 General Agreement on Trade and Tariff and the WTO agreement on safeguards, PTI reported.

India also said that it reserved “the right to suspend” equivalent concessions as the consultations it had sought have not taken place, according to The Indian Express.

The duties could be imposed after 30 days, NDTV Profit reported.

The American measures could hurt $2.8 billion worth of Indian exports to the US annually, on which the duty collection would be $723 million, according to PTI.

“Accordingly, India’s proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the United States,” PTI quoted New Delhi’s notification as having said.

This came at a time when India and the US are negotiating a trade deal. The agreement is close to being finalised and will be announced soon, the White House had said on Monday.

The statement came days before the 90-day suspension of tariffs announced by US President Donald Trump is set to end on July 9.

In June, the US rejected India’s May 9 notice to the World Trade Organization proposing retaliatory tariffs after Washington increased the import duties on aluminium and steel to 25%.

The US argued that it had imposed the tariffs on the grounds of national security and claimed that there were procedural errors in India’s case. Washington also asserted that the tariffs were not safeguard measures.

However, New Delhi argued that the actions were safeguard measures. India said that it had the right to impose retaliatory tariffs as the US had not held consultations, as are mandatory under the Agreement on Safeguards.