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International trade

India to Impose Tariffs on US Products to Counter Aluminum and Steel Duties

Strategic Insights

— 1 min read

India, the world's second-largest producer of crude steel, is planning to impose import duties on certain US products to counter Washington's tariffs on steel and aluminum, according to a document submitted to the World Trade Organization. This move is in retaliation to the US's 25% tariff on steel and aluminum imports, which were imposed in March as a safeguard measure. India had previously sought consultations with the US under the WTO's safeguard agreement in April, and this latest move is a significant escalation of the trade tensions between the two countries.

Key Takeaways:

  • India plans to impose tariffs on selected products originating in the US, including those covered by the US's 25% tariff on steel and aluminum imports, to counter Washington's tariffs.
  • The proposed suspension of concessions or other obligations takes the form of an increase in tariffs on selected products originating in the US.
  • India is seeking to counter the US's tariffs on steel and aluminum imports, which were imposed as a safeguard measure in March.
  • The US's 25% tariff on steel and aluminum imports is expected to affect $7.6 billion in imports into the US, generating $1.91 billion in duty collection.
  • India will also try to slash its tariff gap with the US by two-thirds as part of a trade deal currently being negotiated.
  • The Indian team is currently visiting the US for trade talks.

Statistics:

  • US's 25% tariff on steel and aluminum imports is expected to affect $7.6 billion in imports into the US, generating $1.91 billion in duty collection.
  • India's proposed tariffs on selected US products will be a significant escalation of trade tensions between the two countries.
  • The US and India are currently negotiating a trade deal, with India offering to slash its tariff gap with the US by two-thirds.
  • India is the world's second-largest producer of crude steel, with a strong steel industry that accounts for a significant portion of the country's exports.

Sources:

  • Reuters, "India seeks to impose tariffs on US products to counter Washington's tariffs on steel and aluminum"
  • World Trade Organization, "Safeguard Measures: India's Notice of Intent to Impose Safeguard Measures on Certain Steel and Aluminum Products from the United States"
  • ABP Private Limited, "India to Impose Tariffs on US Products to Counter Aluminum and Steel Duties"

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