India is considering imposing tariff countermeasures on select American commodities in response to Washington’s move to levy a 50% duty on Indian steel, aluminium, and related products in June, sources have revealed. This action, if taken, would mark India’s first retaliatory step since former US President Donald Trump’s July 31 announcement of a 25% tariff on all Indian goods entering the US following failed trade talks, as well as the August 6 penalties linked to Russian oil purchases.
India Mulls Tariff Countermeasures on US Goods After Steep American Duties on Steel and Aluminium
While the steel and aluminium dispute has been running parallel at the World Trade Organization (WTO), its escalation could deepen the ongoing trade tensions between the two nations. Officials say India has built a legal case for retaliation under WTO rules after the US rejected its request for consultations. India argues that video Washington’s measures are WTO-incompatible safeguard actions disguised as national security provisions.
The proposed countermeasures could target a range of US goods
“Washington is unwilling to address New Delhi’s concerns through talks, which leaves India with little option other than to retaliate,” a person familiar with the matter said. The proposed countermeasures could target a range of US goods, although officials have yet to finalise the list. Trade experts believe such a move could not only impact bilateral trade but also set the tone for future negotiations, especially in light of the broader strain on India-US economic relations.
