India hits back at Trump tariffs, to impose retaliatory duties on steel and aluminum; U.S. likely to feel the pinch.

USA INDIA TarINDUAiff War: India Hits Back at Trump’s Tariffs, Plans Retaliatory Duties on U.S. Products

India has decided to retaliate against U.S. President Donald Trump’s tariff policy, which imposed duties on several countries, including India. The U.S. cited national security to justify tariffs ranging from 10% to 25%.

In response, India has proposed retaliatory duties under World Trade Organization (WTO) rules on steel and aluminum import tariffs imposed by the U.S.,

which are expected to increase the economic burden on America.

According to a WTO communication report, Indian exports worth $7.6 billion to the U.S. now face duties amounting to $1.91 billion. In retaliation, India plans to impose equivalent duties on U.S. goods.

What’s the Dispute?

In March 2018, the U.S. imposed a 25% tariff on steel and 10% on aluminum imports, effective from March 23, 2018.

These tariffs were increased in January 2020 and revised again on February 10, 2025, becoming effective from March 12, 2025, with a 25% duty on steel.

While the U.S. maintains these tariffs are for national security reasons, India argues that they violate WTO’s General Agreement on Tariffs and Trade (GATT) 1994 and the Agreement on Safeguards (AoS).

India Takes a Firm Stand

On May 9, 2025, India informed the WTO of its intent to impose retaliatory tariffs on U.S. products.

It also stated that it may implement these duties 30 days later and reserves the right to modify the product list and tariff rates if necessary.

India has communicated its stance to the WTO’s Council for Trade in Goods and Committee on Safeguards.

Not the First clash

India has decided to impose retaliatory tariffs on U.S. products in response to duties on steel and aluminum.

The U.S. imposed 25% tariff on steel and 10% on aluminum imports citing national security concerns.

India claims these tariffs violate WTO’s GATT 1994 and Agreement on Safeguards.
The retaliatory duties by India could amount to $1.91 billion, matching the impact on its exports.

Both countries are currently in talks over a Bilateral Trade Agreement to resolve ongoing disputes.

This isn’t the first trade tension between the two nations. In 2018, the Trump administration imposed tariffs on steel and aluminum,

prompting India to increase tariffs in June 2019 on 28 U.S. products, including almonds and walnuts. India also took the matter to the WTO.

Currently, both countries are negotiating a Bilateral Trade Agreement (BTA), with an Indian delegation visiting the U.S. for trade talks this week.

India has made it clear that it will take all necessary steps to protect its trade interests.

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