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- India Likely to Ready Tariff Strike on Us Goods, After Trump’s 50% Steel and Aluminum Duty
Mumbai4 minutes ago
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The US has imposed 50% tariff (import duty) on Indian steel, aluminum and many products. According to the report of Hindustan Times, now in response to this, India is also considering imposing up to 50% tariff on selected American products.
If this happens, it will be India’s first formal retaliation on the tariff of American President Donald Trump. On 31 July, Trump imposed 25% tariff on all Indian products. After this, again on August 6, India had imposed an extra tariff of 25% on India for oil imports from Russia.
From conversation to trade war
Steel and aluminum disputes have been going on since February, when the Trump administration imposed 25% tariff on these metals. This duty was increased to 50% in June. This has affected Indian exports worth at least $ 7.6 billion, or Rs 66,559 crore.
India said in the World Trade Organization ie WTO that America’s move has been hidden in the name of ‘National Security’, while in reality it is unlike WTO’s rules. The US refused to negotiate in the matter. After this, India has now made legal preparations for retaliation under the WTO rules.
How much tariff can India impose?
Hindustan Times quoted a source as saying that America is not ready to resolve India’s concerns with talks. Due to which India has no other option left. This reversal can begin with a tariff on a set of American products that are in the ratio of damage caused by American duty. That is, India can impose up to 50% tariff on such products.
Another official told Hindustan Times that on the one hand the US is talking on the Bilateral Trade Agreement, on the other hand, taking improper steps against India’s economic interest. This is the reason why India has the right to respond to Unilateral and unfair action in America.
Billion dollar trade at stake
The US exports more than $ 45 billion to India. At the same time, India had an export of $ 86 billion before the recent tariff. If India retaliates in the case of tariff, the business may change further.
In February this year, President Trump and Prime Minister Narendra Modi promised to increase bilateral trade to $ 500 billion and start negotiations. However, the US wants more rituals in India’s agriculture and sensitive sectors. At the same time, India turned down the US demand, after which the conversation on the trade deal came to a standstill.
Trump’s clear message to India
Trump on Thursday ended the possibility of restoring talks with India. Trump told reporters at the White House that talks on the trade deal with India are not going to move forward until the current dispute is resolved.
Metal is not limited to trade
The US exported an energy of $ 13.62 billion (Rs 1.19 lakh crore) to India in 2024–25, as well as a large trade in electronics, chemicals and other goods. Service trade between the two countries is also important. In 2024, Bilateral Services had a business of $ 83.4 billion (Rs 7.30 lakh crore), with a surplus of US $ 102 million (Rs 893 crore).
In 2024, India increased by about 16% to $ 41.8 billion (Rs 3.66 lakh crore) to India, while imports from India also increased to almost the same rate to $ 41.6 billion, or Rs 3.64 lakh crore.
