A document submitted to the World Trade Organisation saying India is looking to levy import duties on some products made in the US suggests Delhi will take a tougher stance in its trade talks with Washington.
The Modi government has been keen to do a broad trade deal with the Trump Administration but its move to file notice of a trade dispute to the WTO shows it is pushing back on US tariffs on steel and aluminium.
India had offered to reduce the average tariff difference with the US from 13% to 4%, but appears to have sought a greater concession from the US after Washington slashed tariffs it imposed on China dramatically on the weekend.
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Reuters said on Tuesday the document filed with the WTO showed that India is looking at levying import duties on some US goods to counter Washington’s 25% tariffs on steel and aluminium products.
“The proposed suspension of concessions or other obligations takes the form of an increase in tariffs on selected products originating in the United States,” the document dated May 12 said.
It did not say what kind of products might be subjected to tariffs.
Delhi not happy with steel tariff
In March, the US imposed 25% levies on steel and aluminium imports – an extension of tariffs first imposed in 2018 during US President Donald Trump’s first term.
India, the world’s second-largest producer of crude steel, said in its document to the WTO that the measures would affect $7.6 billion worth of India-made products imported into the United States.
In addition to the duties on steel and aluminium, Trump’s administration has threatened reciprocal tariffs of 26% on Indian goods. The two countries are trying to clinch a trade deal, with New Delhi offering to slash its tariff gap with the US by two-thirds.
India has some of the world’s highest tariffs on imports, and Trump has previously called India a “tariff abuser”.
India has also levied tariffs of its own on steel. Last month, it imposed 12% temporary tariffs to curb imports of cheap steel, primarily from China.
In addition to its attempts to stem supply domestically, New Delhi is also trying to secure greater access for Indian steel exports through trade talks with partner countries.
- Reuters with additional input and editing by Jim Pollard
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