Tensions are escalating between India and the United States after Washington rejected New Delhi’s formal notice at the World Trade Organization (WTO) seeking retaliation over steep US import tariffs on steel and aluminium, HT reported.
The US has refused to engage in consultations, arguing that its February 10 decision to impose a 25% tariff on all steel and aluminium imports was not a “safeguard measure” under WTO rules and therefore does not warrant discussion or retaliation, the report showed.
India had filed the notice on May 9, asserting its right to proportionately suspend trade concessions offered to the U.S. if the dispute was not resolved within 30 days — setting June 8 as the trigger date for potential action.
HT reported that India is now weighing options to impose retaliatory tariffs, particularly targeting American agricultural exports such as almonds and walnuts, as well as potentially increasing customs duties on U.S.-origin metals.
The standoff has deepened further following the Trump administration’s May 30 announcement to double the existing tariffs, raising duties on steel and aluminium to 50% starting June 4. Washington has justified the move on grounds of "national security" and the need to protect domestic metal industries.
India’s WTO filing stated that these duties had significantly impacted Indian exports and amounted to a breach of trade commitments under multilateral rules. By suspending its own obligations, India aims to rebalance trade ties in the absence of a negotiated resolution.
Trade experts warn that the escalation could mark the beginning of a new trade rift between the two countries, both of whom are already navigating complex geopolitical and economic dynamics. Whether India follows through with retaliatory tariffs or opts for further diplomatic engagement remains to be seen in the days ahead.
