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Tit For Tat - India Set To Impose Tariffs On U.S.

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US 11 Aug 2025 04:06 PM IST Economic Times

Tit For Tat - India Set To Impose Tariffs On U.S.

India is preparing to impose retaliatory tariffs on a range of U.S. goods following Washington’s decision to sharply increase duties on Indian steel and aluminium. The United States raised these tariffs from 25% to 50% earlier this year, a move that affects approximately $7.6 billion worth of Indian exports.

According to officials, India has notified the World Trade Organization (WTO) of its intent to respond, arguing that the U.S. action justified under “national security” grounds is inconsistent with global trade rules. Under WTO provisions, India is entitled to take proportionate measures to protect its economic interests.

The government is assessing a targeted list of American imports that could face higher duties, aiming to minimise domestic market disruption while signalling a firm stance against what it sees as unfair trade practices.

Industry leaders, particularly in the steel and aluminium sectors, have warned that the U.S. tariffs could undermine competitiveness, threaten jobs, and reduce export earnings. Companies are urging swift policy action to shield domestic producers from further harm.

Trade analysts note that while retaliation is a powerful tool, India could also use ongoing bilateral trade discussions to address the dispute and avoid a prolonged tariff escalation.

The move reflects New Delhi’s broader commitment to defending its key export industries while upholding fair-trade principles in an increasingly protectionist global environment.