India is contemplating the imposition of tariffs on certain imports as a response to the steel and aluminum tariffs implemented by the Trump administration on some U.S.-made goods. This information comes from recent documentation submitted to the World Trade Organization.
According to the document, which surfaced on Monday, the move would involve raising tariffs on select products originating from the United States.
However, the specifics regarding which products might face these tariffs haven’t been disclosed.
Earlier this year, the Trump administration began enforcing a 25% tariff on steel and aluminum imports.
It’s worth noting that India is currently the second-largest crude steel producer globally.
The documentation indicates that these potential tariff measures could impact U.S. goods valued at approximately $7.6 billion being sold in India.
In addition to the steel and aluminum tariffs, there’s a threat from the Trump administration to introduce a 26% mutual tariff on Indian products. This situation is unfolding as both nations seek to finalize various trade agreements, with India looking to significantly narrow the tariff gap with the U.S.
Despite having some of the steepest import tariffs worldwide, India has faced criticism from Trump, who labeled it a “tariff abuser.”
Furthermore, last month, India enacted a temporary 12% tariff aimed at reducing the influx of inexpensive steel, particularly from China. While attempting to protect its domestic market, India is simultaneously striving to enhance its steel export opportunities through discussions with trade partners.
