India's Retaliatory Tariffs: A New Twist in US-India Trade Relations

India plans to impose retaliatory tariffs on US products in response to American duties on steel and aluminium, potentially affecting ongoing trade agreement negotiations. If consultations fail or tariffs are not withdrawn, these duties could commence in June. Both nations are currently engaged in bilateral trade talks.

India's initiative to impose retaliatory tariffs on certain US goods in response to American steel and aluminium tariffs is likely to affect ongoing trade negotiations, warned the Global Trade Research Initiative (GTRI) on Tuesday.

GTRI noted that resolution might be feasible if the US consults with India or withdraws the tariffs. Otherwise, India's retaliatory measures could begin in June, escalating trade tensions.

The WTO was notified by India about its plan to suspend trade concessions to the US, possibly raising tariffs on selected US imports. This move aligns with India's industrial strategy and comes while both nations are discussing a potential free trade agreement.

(With inputs from agencies.)