India's Retaliatory Tariffs: Tensions Rise in Global Trade Arena

India has announced plans to impose retaliatory duties against the United States, responding to American tariffs on steel and aluminium under World Trade Organisation (WTO) norms. The measures could impact USD 7.6 billion worth of Indian goods entering the US, leading to a duty collection of USD 1.91 billion.

The Indian government had previously sought consultations with the United States under the WTO's safeguard agreement after the US introduced a 25% tariff on certain steel and 10% on aluminium items. Despite claims of national security by the US, India disputes these as safeguard measures that contravene the General Agreement on Trade and Tariffs (GATT) 1994.

India's proposed countermeasures include raising tariffs on selected American products to offset the adverse effects of these tariffs on its trade. This proposal comes amid ongoing negotiations for a bilateral trade agreement and follows previous retaliatory moves by India, including increased duties on 28 US goods in June 2019.

(With inputs from agencies.)