In a significant move at the World Trade Organisation (WTO), India has revised its earlier proposal to impose retaliatory duties on US goods. The revised stance comes in response to the Trump administration’s decision to double tariffs on steel and aluminium imports—from 25% to 50%.
India’s WTO notification clearly states it reserves the right to adjust both products and tariff rates in response to the tariff hike, reflecting the seriousness with which it views the US move.
From $1.9 Billion to $3.8 Billion
Back in May, India had indicated it would impose retaliatory tariffs targeting $1.9 billion in trade—equivalent to the estimated loss incurred by Indian exporters due to the US-imposed Section 232 tariffs.
Now, with the US doubling those duties, India has revised its retaliation target to $3.8 billion, matching the scale of economic impact caused by the tariff hike. The move underscores India’s firm stance in defending its trade interests on a global platform.
Trade Talks in the Background
This development comes at a delicate time. India and the US are currently negotiating the first phase of a bilateral trade agreement. Initial rounds of talks have failed to yield a deal, missing the earlier deadline of July 9. With a new tariff pause deadline set for August 1, negotiators are under pressure to finalize terms within the next few weeks.
The retaliatory posture at WTO could add further complexity to these discussions, or it might act as a strategic lever to expedite concessions and deal finalization.
The Road Ahead
As India asserts its rights at the WTO, all eyes are on how the US will respond—both diplomatically and economically. The outcome of the upcoming trade negotiations will not only influence India-US trade relations but could also set the tone for future tariff battles on the global stage.
For now, India’s message is loud and clear: trade must be fair, and retaliation will be proportionate.
