Amidst ongoing trade deal talks, India has proposed retaliatory tariffs on Wednesday against the United States under the World Trade Organisation (WTO) regulations in response to American duties on steel and aluminium, which were imposed as ‘safeguard measures’.The timing is crucial as both nations are in discussions for a trade agreement, with the initial phase expected to conclude by September-October.India proposed retaliatory duties on specific American goods under the WTO framework in May, countering US tariffs on steel and aluminium implemented as safeguard measures. India informed the WTO that these actions would impact US imports worth $7.6 billion.Also Read | India-US trade deal: Indian team to visit Washington for another round of talks; Donald Trump’s tariff deadline looms
Why India Is Planning Retaliatory Tariffs
The US implemented safeguard measures on March 8, 2018, placing 25% and 10% ad valorem tariffs on certain steel and aluminium products, effective March 23, 2018. On February 10, 2025, they revised these safeguard measures on steel and aluminium imports, taking effect from March 12.“The safeguard measures would affect $7.6 billion imports into the United States of the relevant products originating in India, on which the duty collection would be $3.82 billion,” India told the WTO.India had previously suggested retaliatory tariffs against US automotive duties last week.The suggested suspension of concessions or other obligations would manifest as increased tariffs on specific products from the United States, according to an ET report.“Accordingly, India’s proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the US,” India said.“This notification is made in connection with safeguard measures extended by the US on imports of aluminium, steel and derivative articles” India said Wednesday.Also Read | Donald Trump’s fresh tariff warning: 50% on copper, 200% on pharmaceuticals – how will it impact India?
