Retaliatory Tariffs On US Signal 'Tougher Indian Stance', Say Experts
Unless consultations are initiated or the U.S. measures are withdrawn, India’s retaliatory tariffs may come into effect 30 days from the notification date, on June 8.
India's move to formally notify the World Trade Organization of its plan to impose retaliatory tariffs in response to Washington's continued duties on steel and aluminium imports, is being seen as a "tougher Indian stance" amid strategically important ongoing bilateral trade talks.
Unless consultations are initiated or the U.S. measures are withdrawn, India’s retaliatory tariffs may come into effect 30 days from the notification date, on June 8.
"India has also reserved the right to adjust product coverage and tariff rates to ensure a proportional economic response, signaling its determination to use WTO mechanisms robustly," said Global Trade Research Initiative's Ajay Srivastava.
He added that India’s latest WTO action comes at a "delicate moment", when New Delhi and Washington are exploring a broader free trade agreement, and this retaliation could cast a shadow over negotiations.
"Still, India’s calibrated, rules-based approach contrasts with the unilateralism of US trade actions and positions India as a staunch defender of multilateral trade norms. The move also signals a tougher Indian stance, especially in politically sensitive sectors like steel and aluminium that align with its "Make in India" industrial strategy," he said.
The move is "heartening" but the situation still remains "volatile" and "flexible", according to Pankaj Chadha, Chairman of the Engineering Exports Promotion Council. The EEPC is a body whose members have directly been hit by the US tariffs, which have caused about a $5 billion loss.
"This is good posturing, though we will wait to see how this plays out. This is only at the proposal stage right now," Chadha added.
According to Srivastava, the ball is now in the US' court.
"If the US engages in consultations or withdraws the contested measures, a resolution may be reached. Otherwise, India’s tariff response could take effect in early June, potentially affecting U.S. exporters and deepening trade frictions. Either way, India’s move reflects a broader shift: a willingness to assert itself within global trade rules to protect its economic interests," he said.
