India on Tuesday formally challenged the US on higher auto tariffs by raising the matter with the World Trade Organization, signaling a hardening of the South Asian nation’s stance on trade talks even as the two countries race to clinch an interim deal before July.

India will seek to the settle the issue bilaterally as part of the ongoing trade talks, rather than pursue it in the WTO.

Trade negotiations between the United States and India are making progress and a deal could be finalised soon, U.S. Commerce Secretary Howard Lutnick said on Monday, as both sides push to conclude talks ahead of a July deadline.