India is reassessing its proposal to impose retaliatory tariffs on American goods in response to increased US duties on steel and aluminum. The move follows the United States’ decision to double its tariffs on these metals to 50%, causing significant damage to Indian exports—estimated at $7.6 billion. India reported to the World Trade Organization (WTO) that it may implement tariffs totaling $3.82 billion as compensation.
This potential shift includes suspending concessions by raising duties on certain US-origin goods. In May, India had already floated the idea of imposing matching tariffs under WTO provisions, citing a $1.91 billion loss from the original 25% tariffs on Indian metal exports.
The timing of the latest proposal coincides with upcoming trade negotiations, as an Indian delegation prepares to visit Washington next week. Talks are expected to touch on both interim and broader bilateral agreements. Meanwhile, India's steel trade landscape has shifted: in April and May of FY2025/26, imports of rolled products dropped by 27.6% to 0.9 million tons, while exports declined 18.1% to 0.8 million tons. Belgium has emerged as India’s top destination for rolled steel exports during this period, reflecting changing dynamics in global steel trade.
