India Revises WTO Tariff Proposal in Response to Increased US Duties

India has revised its earlier proposal submitted to the World Trade Organization (WTO) to impose retaliatory tariffs on the United States over increased import duties on steel and aluminum. This move comes in response to the U.S. raising tariffs from 25% to 50% on March 12 and again on June 3.

According to the WTO, "In connection with the notification provided on May 12, India reserves the right to adjust the list of products and tariff rates in response to the U.S. increasing its duties from 25% to 50%." The statement was issued to WTO members at India’s request.

The notification notes that U.S. safeguard measures would affect $7.6 billion worth of Indian exports, leading to estimated tariff collections of $3.82 billion. As a countermeasure, India plans to impose retaliatory tariffs on U.S.-origin products to collect a similar amount. Earlier, India had estimated $1.91 billion in tariff collection under its May 12 letter.

In 2018, during President Donald Trump’s administration, the U.S. imposed a 25% duty on certain steel products and 10% on aluminum. India responded by imposing tariffs on 28 U.S. products. The latest revision indicates an escalation in trade tensions and India’s firm stance at the WTO.