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India hits back at US tariffs, escalates trade fight via WTO

7 1
14.07.2025

In a sharp escalation of trade tensions, India has officially proposed retaliatory tariffs against the United States under the framework of the World Trade Organization (WTO), targeting $7.6 billion worth of American exports. The move, announced through a WTO notification circulated on July 9, is a direct response to what India has termed as unjustified “safeguard measures” initiated by US President Donald Trump’s administration – particularly tariffs on aluminum and steel imports.

The proposed retaliatory tariffs on India, which would see duties rise from 25% to 50% on a range of American products, represent a calibrated but firm pushback from New Delhi. India’s action reflects both a desire to protect its industrial interests and a broader frustration with the current state of global trade governance.

India’s WTO notification is clear in its intent: to recoup the financial harm caused by US tariffs that were first introduced in 2018 and dramatically increased in June 2025. These tariffs, part of Trump’s so-called “Liberation Day” declarations, hiked duties on imports of steel, aluminum, and derivative goods, raising them to a 50% ad valorem rate – a significant blow to Indian exporters.

According to the notification, these American measures would impact $7.6 billion in Indian exports annually, with an estimated $3.82 billion in additional duties collected from Indian goods. India’s proposal to impose “an equivalent amount” in retaliatory tariffs aligns with WTO provisions that allow member states to suspend concessions when they believe another member is in violation of trade agreements.

“India reserves its right to adjust the products and tariff rates,” the........

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