India Revises Retaliatory Tariff Proposal Against US Under WTO Rules Amid Fresh Tariff Hikes on Steel & Aluminium
In a significant development in global trade diplomacy, India has revised its proposal to impose retaliatory tariffs against the United States under the framework of the World Trade Organisation (#WTO). This comes in response to the recent escalation in American tariffs on steel and aluminium imports, initiated under the Trump administration.
The move by India follows a fresh hike in US duties, raising tariffs on certain aluminium, steel, and derivative products from the initial 25 per cent to a steep 50 per cent, as of June 3. The original tariff action had begun on March 12, when the US administration imposed 2 per cent duties on steel and 10 per cent on aluminium, citing national security grounds under Section 232 of the Trade Expansion Act.
In a formal communication issued by the WTO on Wednesday, it was revealed that India has notified the organisation of its intent to recalibrate its list of targeted products and corresponding tariff rates. The notification states that this revision is being made “without prejudice” to India’s earlier communication dated May 12, submitted to the Council for Trade in Goods and the Committee on Safeguards.
According to the WTO document, India reserves the right to suspend concessions or other obligations under the multilateral trading system, and the retaliatory measures will involve higher tariffs on selected US-origin goods. The products subject to the suspension of concessions will be chosen strategically to match the scale of trade affected by the US safeguard duties.
The revised estimate, as outlined in the recent notification, suggests that Indian exports worth approximately #USD7.6Billion to the US have been impacted by these increased duties. In response, India is now planning to collect retaliatory duties amounting to nearly #USD3.82Billion from US-origin imports — effectively doubling the duty impact that was previously estimated at USD 1.91 billion in the May 12 proposal.
This calculated move by India represents a sharp escalation in the tariff standoff, which traces its roots back to 2018, during the first Trump administration. At that time, the US had imposed global duties of 25 per cent on steel and 10 per cent on aluminium, sparking widespread discontent among several WTO member nations, including India.
In retaliation, India had imposed additional customs duties on 28 US products in June 2019. The targeted American items included key exports like almonds, walnuts, apples, and certain finished steel products. India also took the step of lodging a formal #WTOdisputeComplaint against the US actions, challenging the legal justification behind the tariffs.
The current revision of retaliatory measures is significant not just within the WTO framework but also in light of the ongoing trade negotiations between India and the United States. Talks are underway for a #BilateralTradeAgreement (BTA), and this development could potentially influence the tone and direction of upcoming discussions.
According to sources familiar with the matter, a high-level Indian trade delegation is scheduled to visit Washington next week to continue bilateral negotiations. While India has maintained a cooperative stance on trade issues, this latest WTO notification signals that New Delhi is prepared to assertively defend its economic interests on the multilateral platform.
Trade experts believe that this move may act as both a lever and a signal in India’s negotiation strategy, urging Washington to reconsider unilateral tariff measures and engage in more balanced trade arrangements.
The coming weeks are expected to be crucial as diplomatic and trade channels between the two democracies navigate the complexities of tariffs, WTO rules, and the broader geopolitical trade environment.
