कृपया इसे हिंदी में पढ़ने के लिए यहाँ क्लिक करें
India has formally notified the World Trade Organization (WTO) of its intention to impose retaliatory tariffs on select U.S. products in response to America’s 25% safeguard duties on steel and aluminium, impacting approximately $7.6 billion of Indian exports. The move—filed on May 12, 2025—invokes India’s rights under the WTO Agreement on Safeguards and seeks to suspend concessions equivalently, taking the form of increased import duties on U.S. goods. This measured counterbalance comes amid wider bilateral trade negotiations and may take effect as early as June if consultations fail. While designed to uphold WTO disciplines, the action introduces fresh uncertainty into the U.S.–India talks aimed at a comprehensive trade pact by autumn 2025.
Background
U.S. Safeguard Duties
In March 2025, the United States extended 25% tariffs on steel and aluminium imports—originally imposed in 2018 under Section 232 on grounds of national security—continuing a protectionist trajectory under President Donald Trump’s administration. These measures were justified by Washington as necessary to protect domestic industry but have been widely criticized for distorting global trade flows.
India’s Trade Position
As the world’s second-largest crude steel producer, India has grappled with a trade-weighted average tariff of 12%, significantly higher than the U.S. average of 2.2%. New Delhi has previously sought to ease tensions by offering tariff reductions on certain U.S. goods (e.g., motorcycles, spirits) and inviting trade talks, but warned such concessions were contingent upon U.S. relief from its own levies.
The WTO Submission
On May 12, 2025, India submitted a formal Notice of Intent to the WTO, invoking Article 8 of the Agreement on Safeguards (AoS). The notice states:
“The proposed suspension of concessions or other obligations takes the form of an increase in tariffs on selected products originating in the United States.”
Though India has not publicly disclosed the exact list of U.S. products to be targeted, it signalled parity with the estimated $7.6 billion of its exports affected by U.S. duties. India reserves the right to implement these duties as early as the “expiration of consultations,” which WTO rules cap at 60 days, placing potential enforcement in early June 2025.
Potential Impact
- Economic stakes: The duties could yield up to $1.9 billion in additional revenue for India if fully applied, assuming U.S. import volumes remain unchanged.
- Sectoral effects: India’s 2019 retaliation targeted U.S. almonds, apples and chemicals; a similar pattern of everyday consumer goods and intermediate inputs may re-emerge, potentially affecting American exporters large (e.g., agricultural conglomerates) and small.
- Diplomatic signal: The submission underscores India’s willingness to defend its exporters under multilateral rules, even as it pursues deeper bilateral ties with Washington.
Expert Opinions & Negotiations
Think tanks warn that retaliatory tariffs, while legally justified, could “cast a shadow” over U.S.–India trade pact talks slated for conclusion by fall 2025. The Global Trade Research Initiative (GTRI) notes that if the U.S. withdraws its safeguard duties or engages sincerely in consultations, a mutually agreeable resolution may yet be found; otherwise, implementation could escalate frictions.
Meanwhile, both sides have indicated a desire to bridge tariff disparities—India floated a “zero-for-zero” auto-parts tariff plan in early May, and U.S. negotiators signaled India as a priority partner for a flagship trade deal.
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