India Plans Retaliatory Tariffs on U.S. Imports

India Plans Retaliatory Tariffs on U.S. Imports

Why in the News ?

India has notified the World Trade Organization (WTO) of its plan to impose retaliatory tariffs on $7.6 billion worth of U.S. imports. This move comes in response to the U.S. imposing 25% duties on steel and aluminium imports.

Background of the Tariff Dispute

• In 2018, the S. under Trump imposed 25% tariffs on steel and aluminium, calling it a national security measure.
• In February 2025, these duties were extended, and all country-specific exemptions were removed.
• India views these measures as safeguard duties, not national security actions, and claims they violate WTO rules under GATT 1994 and the Agreement on Safeguards (AoS).

India’s Stand and WTO Notification

• On May 9, 2025, India informed the WTO of its intent to retaliate through a suspension of concessions on selected U.S. products.
• India argues the U.S. did not hold mandatory consultations under Article 12.3 of AoS.
• The retaliatory move could begin 30 days after the notification.

Trade Impact and Precedent

• S. measures affect $7.6 billion worth of Indian exports; duty impact estimated at $1.91 billion.
• India plans equivalent duty collection on U.S. goods.
• A similar action occurred in 2019, when India imposed tariffs on 28 U.S. items, withdrawn in 2023 after high-level talks.