Wed May 21 12:47:19 UTC 2025: **News Article: India Retaliates to U.S. Steel and Aluminium Tariffs with $7.6 Billion Counter-Tariffs**

**New Delhi, May 22, 2025** – India has notified the World Trade Organization (WTO) of its intent to impose tariffs on $7.6 billion worth of imports from the United States, a retaliatory measure against the U.S.’s reinstatement of 25% tariffs on steel and aluminium imports. The move, announced last week, will take effect 30 days from the initial notification on May 9th.

The tariffs, estimated to generate $1.91 billion in duties, aim to mirror the economic impact of the U.S. tariffs on Indian steel and aluminium exports. This action comes shortly after both countries announced expedited progress toward a bilateral trade agreement, putting a potential strain on future negotiations.

U.S. President Donald Trump, now in his second term, reinstated the tariffs, citing the need to protect domestic industries from “unfair trade practices and global excess capacity.” India initially responded to similar tariffs in 2019 when the U.S. removed it from the Generalised System of Preferences (GSP), imposing retaliatory tariffs on 28 U.S. import items. While trade tensions eased somewhat under President Biden, Trump’s return to office has reignited the dispute.

The central point of contention lies in the U.S. justifying the tariffs under a “national security statute” within the General Agreement on Tariffs and Trade (GATT). However, India, along with the EU, China, and the UK, disputes this characterization, asserting that the tariffs are safeguards and that mandatory consultations were not adequately conducted. India has reserved the right to suspend trade concessions equivalent to the adverse effects of the U.S. measures.

Experts suggest that while the U.S. tariffs caused a dip in Indian steel exports in the past, India’s “calibrated, rules-based approach” positions it as a defender of multilateral trade norms. Naveen Pant of the Aluminium Secondary Manufacturers Association (ASMA) stated that the move is necessary to protect domestic industries and level the playing field in negotiations.

Whether the U.S. will engage in consultations or withdraw the tariffs remains to be seen. Should the U.S. fail to do so, India’s counter-tariffs will take effect in early June, marking a significant escalation in the trade dispute.

**[This article is based on information from *The Hindu* newspaper.]**

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