New Delhi: India has announced plans to impose tariffs on certain US products in response to the duties placed on steel and aluminum by Washington. This action represents India’s initial countermeasure against President Donald Trump’s tariff policies, even as both nations work towards finalizing a trade agreement, according to reports from Bloomberg and Reuters based on a document submitted to the World Trade Organization.
The document, dated May 12, indicates that the proposed increase in tariffs will target specific US-origin products, although it does not specify which items will be affected. In March, the US implemented a 25% tariff on steel and aluminum imports, a continuation of tariffs first introduced in 2018 during Trump’s initial presidency.
India, the second-largest crude steel producer globally, noted in its WTO submission that these measures would impact $7.6 billion worth of Indian goods exported to the US. Furthermore, in addition to the steel and aluminum tariffs, the Trump administration has threatened to impose reciprocal tariffs of 26% on Indian products.
Both countries are negotiating a trade deal, with India proposing to reduce its tariff disparity with the US by two-thirds. India currently maintains some of the highest import tariffs in the world, and Trump has previously labeled India as a ‘tariff abuser.’
India has implemented its own tariffs on steel, introducing a temporary 12% duty last month to limit the influx of inexpensive steel, mainly from China. Alongside efforts to manage domestic supply, New Delhi is also pursuing enhanced access for Indian steel exports through discussions with trade partners.
This action represents India’s initial retaliatory measure during Trump’s second term. Recently, while the US president announced a series of new tariffs, New Delhi indicated it would avoid reciprocal actions, opting instead to focus on negotiations for a bilateral trade agreement, which both nations hope to finalize by this fall, according to Bloomberg. Ajay Srivastava, founder of the Global Trade Research Initiative in New Delhi, remarked, ‘India’s recent action at the WTO occurs at a sensitive time, as New Delhi and Washington are considering a more comprehensive free trade agreement, and this retaliation may complicate those discussions.’
