India Retaliation After US WTO Notice Rejected
India Considers Retaliation Following US Rejection of WTO Notice
Background of the Dispute
The recent trade tensions between India and the United States have escalated after the US rejected India’s notice to the World Trade Organization (WTO) regarding retaliatory tariffs. This rejection follows the US’s imposition of steep import tariffs on steel and aluminum effective from March 12. As a result, India is now considering actions that could affect American imports, including nuts and metal products.
India’s Response Options
In light of the US’s decision to double tariffs on metals to 50% citing national security, India may suspend concessions on certain American imports, especially commodities like almonds and walnuts. The Indian notice, submitted on May 9, indicated a potential response after the expiry of 30 days, which leads to June 8. This response shows India’s willingness to retaliate against the perceived unfair trade practices by the US.
The Implications for Trade
Experts indicate that high tariffs enforced by the US could significantly impact Indian exporters. In fiscal year 2025, India exported over $4.56 billion worth of iron, steel, and aluminum products to the US. The increased tariffs threaten the profitability of these exports and could lead to broader economic implications for India’s manufacturing sector. With trade relations under duress, the situation remains tense as India evaluates its next moves in this unfolding trade conflict.