India is exploring the possibility of imposing import duties on certain US products as a countermeasure to Washington’s tariffs on steel and aluminium, says a document submitted to the World Trade Organization (WTO) on May 12.
The document, which does not specify the exact products that could be targeted, states that India is contemplating "the proposed suspension of concessions or other obligations" through tariff increases on selected American goods, Caliber.Az reports citing foreign media.
This move is a response to the US tariffs, which include a 25 per cent levy on steel and aluminium imports that was reinstated in March 2023, building on measures originally introduced in 2018 during Donald Trump's presidency.
India, the world’s second-largest producer of crude steel, outlined in the WTO document that these measures would impact approximately $7.6 billion worth of Indian-made products imported into the US. The document also highlights the broader trade friction between the two nations, as the Trump administration had previously threatened additional reciprocal tariffs of up to 26 per cent on Indian goods.
These tariff disputes come as both nations are engaged in negotiations aimed at securing a broader trade agreement. New Delhi has offered to reduce its tariff gap with the US by two-thirds in an effort to reach a deal. However, India’s tariff policies have long been a point of contention, with President Trump having previously labeled India as a "tariff abuser."
In addition to the potential retaliatory tariffs on US products, India has already taken steps to address domestic steel production concerns. Last month, it imposed a temporary 12 per cent tariff on steel imports, aiming to curb the influx of cheap steel, particularly from China. This move is part of a broader strategy to protect the Indian steel industry and ensure fair competition in the domestic market.
India is also seeking to expand its steel exports and gain greater access to foreign markets through trade negotiations with various partner countries. These efforts reflect New Delhi’s broader aim to balance trade relations while safeguarding the interests of its domestic industries.
By Vafa Guliyeva
Source: caliber.az
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