India weighs retaliatory tariffs on US goods

India is considering imposing retaliatory tariffs on high-value US goods including farm produce, petrochemicals, and medical devices, ahead of commerce minister Piyush Goyal’s visit to Washington this week, Mint reported on Tuesday.

India informed the World Trade Organization (WTO) on Monday that it may impose $1.91 billion in levies on imports from the US.

The government is exploring the move in case talks on a bilateral trade deal fail before the June deadline of the suspension of tariffs imposed by the Trump administration.

The US imposed a steep 26% tariff on Indian goods before hitting the pause button, but a 10% base duty continues to apply on US-bound goods.

Delhi has so far not disclosed the US goods that will face retaliatory tariffs, though almonds, apples, chickpeas, and lentils are likely to figure in the list, the report said.

The proposed tariffs would be implemented only after a 30-day window, and only if the trade deal does not materialize or if the safeguard duties continue, Delhi told the global trade body.

India’s proposed retaliatory move is grounded in WTO’s Agreement on Safeguards and is a direct response to the Trump administration’s decision on 10 February to extend the 25% additional tariff on steel and the 10% additional tariff on aluminum, effective 12 March.

These measures—first introduced in 2018 and extended in 2020—are expected to impact Indian exports worth $7.6 billion, from which duties totaling $1.91 billion could be collected.

Meanwhile, the UK and China have reached understandings with the US to reduce tariffs, setting a precedent India may hope to follow.

Reuters, quoting two Indian officials, said Goyal will lead a trade delegation to the US, starting 16 May, to push forward negotiations.

The US remains India’s largest trading partner, with bilateral trade estimated at $129 billion in FY25. The trade balance favours India, with a $45.7 billion surplus.

Ajay Srivastava, founder of economic think tank Global Trade Research Initiative, said retaliatory tariffs could take effect on 8 June if the US measures remain in place or if the two sides fail to reach a trade deal.