India proposes retaliatory tariffs on US steel and aluminium
What's the story
India has proposed retaliatory tariffs against the United States under World Trade Organization (WTO) norms. The move comes in response to American tariffs on steel and aluminium, which have been labeled as safeguard measures by the Trump administration. The tariffs 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.
Trade tensions
India had also proposed tariffs against US auto duties
Last week, India had also proposed retaliatory tariffs against US auto duties. The proposed suspension of concessions or other obligations would see an increase in tariffs on selected products originating from the US. "Accordingly, India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the US," India said.
Trade dispute
India's earlier proposal to impose retaliatory duties
In May, India had proposed to impose retaliatory duties on certain American products under WTO norms. This was in response to the US's safeguard measures on aluminium and steel imports. The measures were announced by the US in March 2018, imposing a 25% tariff on steel and a 10% tariff on aluminium. On February 10, 2025, these tariffs on imports of steel and aluminium articles were revised.
Trade talks
India, US are in talks for a trade agreement
The development comes as India and the US are in talks for a trade agreement, with the first phase likely to be concluded by September-October. This proposed tariff response from India highlights the ongoing trade tensions between the two nations and their efforts to resolve these disputes through international trade regulations and negotiations.