India proposes tariffs on US goods in response to steel, aluminum duties amid ongoing trade talks
PTC Web Desk: India has announced plans to impose tariffs on a selection of US goods in a strategic response to Washington’s ongoing levies on steel and aluminum imports. This marks India's first formal retaliatory action under US President Donald Trump's second term, even as both nations work toward finalising a trade agreement.
According to reports from Bloomberg and Reuters, the Indian government submitted a notification to the World Trade Organization (WTO) on May 12, detailing the proposed tariff increases on unspecified American products. The document stated that the move is a "suspension of concessions or other obligations," intended to balance the impact of the US import restrictions.
In March, the United States extended its 25% import duties on steel and aluminum, measures initially enacted during Trump's first term in 2018. India, a major global steel producer, highlighted in its WTO communication that these US actions affect approximately $7.6 billion worth of Indian exports.
Tensions have further escalated with the US threatening additional retaliatory tariffs—up to 26%—on Indian products. Despite this, both countries continue to work on a bilateral trade deal, with India reportedly offering to reduce its tariff differences with the U.S. by nearly two-thirds.
India has historically maintained some of the world’s highest import tariffs, drawing criticism from Trump, who has previously labeled India a “tariff abuser.” Last month, India also implemented a 12% temporary tariff on steel imports, mainly targeting inexpensive shipments from China, as part of its broader strategy to protect the domestic market.
While India had earlier opted for a restrained approach—signaling its intent to prioritise dialogue over retaliation—the latest WTO filing suggests a shift in tone. Trade expert Ajay Srivastava of the Global Trade Research Initiative noted, “India’s WTO move comes at a critical juncture. This could potentially impact the momentum of ongoing trade negotiations between the two countries.”
Despite these developments, both New Delhi and Washington continue to aim for a finalised trade deal by fall, hoping to resolve long-standing trade imbalances and improve bilateral economic ties.
- With inputs from agencies
