India has proposed tariff hikes on select US products in retaliation against the United States’ renewed duties on steel and aluminum, marking the first trade countermeasure under Donald Trump’s second term as US President, according to documents submitted to the World Trade Organization (WTO) and reported by Bloomberg and Reuters.
The document, dated May 12, 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.”
Although it did not specify which goods would face higher tariffs, the move comes after the US imposed 25% levies on steel and aluminium imports in March 2025, extending measures originally introduced in 2018 during Trump’s first term.
India, the world’s second-largest crude steel producer, told the WTO that these US measures impact $7.6 billion worth of Indian exports annually.
In response, India is now seeking to apply retaliatory tariffs, even as both nations work to finalize a broader trade agreement. Washington has also threatened 26% reciprocal tariffs on Indian products, increasing tensions ahead of the proposed trade deal deadline later this year.
Trump has previously labeled India a “tariff abuser,” citing the country’s high import taxes. While India had earlier signaled restraint in response to US duties, this WTO filing represents a shift in approach.
Last month, India also imposed 12% temporary tariffs on steel imports, largely targeting Chinese goods, in a bid to protect its domestic industry.
According to Ajay Srivastava, founder of the Global Trade Research Initiative,
“India’s latest WTO action comes at a delicate moment. It may complicate ongoing efforts to reach a comprehensive free trade agreement with the US.”
Both nations are aiming to conclude the deal by fall 2025, but New Delhi’s retaliatory step could potentially delay or derail those negotiations.
