India has proposed new retaliatory tariffs on a range of US goods, aiming to counter the 25% duties recently imposed by the United States on Indian-origin steel and aluminium products, government sources revealed on Tuesday, May 13.
In a notification to the World Trade Organisation (WTO), India announced its intention to withdraw trade concessions and obligations in response to the US measures, which have significantly impacted Indian exporters.
The 25% US tariff, implemented under revised safeguard measures introduced during the Trump administration, is expected to collect $1.9 billion in duties on over $7.6 billion worth of Indian steel and aluminium exports, according to a WTO filing. The duties came into effect in March 2025 and are set for an indefinite duration.
In retaliation, India plans to levy equivalent duties on selected US-origin products, although specific goods under consideration have not yet been disclosed.
This is not the first instance of such trade tensions. The Trump administration in 2018 had imposed similar 25% and 10% tariffs on steel and aluminium, respectively, prompting India to retaliate in 2019 with additional tariffs on a list of American imports.
Under President Joe Biden, the two countries had resolved seven WTO disputes through negotiation, signaling a temporary thaw in trade tensions. However, the recent tariffs appear to mark a renewed phase of economic friction between the two nations.
