India has officially notified the World Trade Organization (WTO)
of its intent to impose retaliatory tariffs on select U.S. imports, escalating
a trade dispute triggered by the United States’ controversial duties on steel
and aluminium.
The proposed Indian move seeks to counterbalance the losses
incurred from the U.S. tariffs—initially imposed in 2018 and extended earlier
this year—which India claims have impacted exports worth $7.6 billion. In
response, India plans to collect $1.91 billion through targeted tariffs on 29
U.S. products, a measure designed to reflect the severity of U.S. restrictions
under Section 232 of its Trade Expansion Act.
Background of the Dispute
The United States first levied 25% tariffs on steel and 10%
on aluminium imports in 2018, citing national security interests. Although
widely criticized as a protectionist measure, the tariffs have remained in
place, and in February 2025, the U.S. further extended their validity
indefinitely—despite global opposition and multiple WTO appeals.
India has consistently argued that these tariffs constitute
“safeguard measures in disguise,” breaching WTO rules under the General
Agreement on Tariffs and Trade (GATT) 1994 and the Agreement on
Safeguards. India is now exercising its right under WTO regulations to suspend
equivalent concessions on American imports.
Products Facing Tariffs
India’s proposed countermeasures target a mix of agricultural
and industrial goods, including:
- Agricultural
products:
Apples, almonds, walnuts, pears
- Chemicals and
metals:
Boric acid, anti-freezing preparations
- Engineering
goods:
Specific iron and steel products
These retaliatory tariffs are designed not just to recover lost
export value but also to put pressure on the U.S. during ongoing bilateral
trade negotiations.
Diplomatic and Economic Implications
India’s move signals a firmer stance on global trade and a
willingness to challenge unilateral actions through multilateral platforms like
the WTO. This development may add friction to India-U.S. economic relations,
particularly as both nations are simultaneously exploring trade cooperation in
tech, defense, and manufacturing.
The U.S. maintains that its tariffs fall under the national
security exemption—an argument India and many other WTO members strongly
contest. The WTO is expected to deliberate on the matter in the coming weeks,
and the outcome could set important precedents for trade law enforcement.
What’s Next?
India will wait for a 30-day notice period before officially
implementing the tariffs. In the meantime, it reserves the right to modify the
list of affected items and the duty rates based on U.S. responses and global
trade developments.
If unresolved, this dispute could further reshape global trade
flows, especially in the metal, agriculture, and manufacturing sectors.
Conclusion
India’s retaliatory step underscores its commitment to defending
its trade interests on the global stage. As the world watches, this case could
redefine how trade conflicts involving national security claims are handled
under WTO law. With broader implications for global supply chains, the stakes
are high—and the message from India is clear: Trade must be fair, rules-based,
and reciprocal.
For more information, visit https://www.indiratrade.com/