India Proposes Duties on US Products in WTO Response

Strategic Insights -

India has informed the World Trade Organization (WTO) that it proposes to impose duties on certain US-made products shipped to India, in response to Washington's tariffs on steel and aluminium products produced in India. The move is significant given the ongoing bilateral trade agreement negotiations between the two countries. The proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in America.

Key Takeaways:

  • The proposed duties by India would impact over $7.6 billion worth of imports from the US, with estimated duty collection of $1.91 billion.
  • India's proposed suspension of concessions would be in response to the US tariffs on steel and aluminium products produced in India.
  • The US had imposed a 25% tariff on certain steel items and a 10% tariff on aluminium products on national security grounds.
  • India had retaliated with customs duties on 28 US products, including almonds and walnuts, in June 2019.
  • India has also filed a complaint in the WTO regarding the US tariffs.
  • India reserves the right to adjust the products as well as the tariff rates in the proposed notification.

Statistics:

  • The proposed duties by India would impact $7.6 billion worth of imports from the US.
  • The estimated duty collection from these tariff levy is $1.91 billion.
  • The US tariffs on steel and aluminium products produced in India have resulted in an impact of over $7 billion worth of imports from India.
  • The estimated duty collection from these tariff levy is $2 billion.
  • India had slapped customs duties on 28 US products, including almonds and walnuts, in June 2019.

Sources:

  • WTO communication dated May 9, 2025.
  • Presidential Proclamation dated February 10, 2025.
  • The Economic Times article dated May 14, 2025.

Note: The dates provided in the sources are according to the original material.