India is stepping up its trade game by formally requesting permission from the World Trade Organization (WTO) to levy retaliatory duties on American goods. This move comes in response to Washington’s continued import taxes on steel and aluminium, a dispute that’s been simmering for over five years.
The US had imposed a 25% duty on steel and a 10% duty on aluminium back in 2018, citing national security concerns under Section 232 of its Trade Expansion Act. These tariffs affected multiple countries, including India, despite repeated objections and diplomatic efforts.
Now, India is seeking WTO’s approval to slap extra duties on US exports valued at $1.41 billion. These countermeasures are meant to balance the scale after what India considers an unjust blow to its metal industry.
India had earlier taken the matter to the WTO’s dispute settlement body in 2019. While a panel ruled in India’s favour in late 2022, the US challenged the decision. With the appeal still pending, India is now taking the next logical step, seeking to recover losses by targeting select US products with equivalent tariffs.
India’s assertiveness marks a broader trend in global trade where emerging economies are no longer holding back when it comes to defending their industries. If approved, the retaliatory duties could shake things up further in India-US trade dynamics.
