India's first retaliation against Donald Trump’s tariffs, proposes duties on US goods: Reports
India has suggested increasing tariffs on certain US products. This marks India's first counteraction during Donald Trump's second term.
India has proposed levies on some US goods to counter Washington’s duties on steel and aluminum, marking its first retaliation against President Donald Trump’s tariff regime, even as the two countries move closer to finalising a trade deal, news agencies Bloomberg and Reuters reported, citing a document submitted to the World Trade Organization.
"The proposed suspension of concessions or other obligations takes the form of an increase in tariffs on selected products originating in the United States," the document dated May 12 said.
It did not say what kind of products might be subjected to tariffs.
In March, the US imposed 25% levies on steel and aluminium imports - an extension of tariffs first imposed in 2018 during US President Donald Trump's first term.
India, the world's second-largest producer of crude steel, said in its document to the WTO that the measures would affect $7.6 billion worth of India-made products imported into the United States, Reuters reported.
In addition to the duties on steel and aluminium, Trump's administration has threatened reciprocal tariffs of 26% on Indian goods. The two countries are trying to clinch a trade deal, with New Delhi offering to slash its tariff gap with the US by two-thirds.
India has some of the world's highest tariffs on imports, and Trump has previously called India a "tariff abuser".
India has also levied tariffs of its own on steel. Last month, it imposed 12% temporary tariffs to curb imports of cheap steel, primarily from China.
In addition to its attempts to stem supply domestically, New Delhi is also trying to secure greater access for Indian steel exports through trade talks with partner countries.
The move marks India’s first retaliatory action during Trump’s second term. Just last month, even as the US president announced a flurry of new tariffs, New Delhi had signalled it would refrain from any tit-for-tat moves, choosing instead to prioritise negotiations toward a bilateral trade deal. Both countries aim to finalise the agreement by this fall, Bloomberg reported.
“India’s latest WTO action comes at a delicate moment,” said Ajay Srivastava, founder of New Delhi-based think-tank Global Trade Research Initiative. “New Delhi and Washington are exploring a broader free trade agreement, and this retaliation could cast a shadow over negotiations.”
(With inputs from Reuters, Bloomberg)
