India has initiated its first countermeasure against the United States under President Donald Trump’s second term by proposing tariffs on select American goods. This comes in response to Washington’s import duties on steel and aluminum and unfolds at a time when the two nations are actively working toward finalizing a bilateral trade agreement.
New Delhi informed the World Trade Organization (WTO) that it considers the US tariffs on steel and aluminum as “safeguard measures” — essentially trade restrictions — that will negatively affect Indian exports. The notification, made public on Monday, emphasizes that these measures hinder India’s trade interests.
According to the official WTO communication, India reserves the right to “suspend concessions or other obligations” as a reciprocal measure under international trade rules. This formal move marks the first instance of retaliation by India during Trump’s current term, signaling a shift in New Delhi’s approach. Until recently, India had refrained from taking retaliatory steps, choosing instead to prioritize ongoing trade discussions. Both countries are aiming to seal a trade pact by the fall.
“India’s latest WTO action comes at a delicate moment,” remarked Ajay Srivastava, founder of the New Delhi-based think tank Global Trade Research Initiative. “New Delhi and Washington are exploring a broader free trade agreement, and this retaliation could cast a shadow over negotiations.”
The WTO filing noted that the US tariffs could affect up to $7.6 billion worth of Indian exports, and that the additional duties imposed by Washington would amount to $1.91 billion. In response, India plans to introduce retaliatory duties equivalent in value to those losses, though it has not yet specified which American products will be targeted.
Earlier this year, President Trump imposed a 25 percent duty on all steel and aluminum imports into the United States, which went into effect on March 12. The move was part of his broader plan to reshape trade relationships globally. At the time, Indian exporters had called on their government to counteract these measures with reciprocal action.
Following WTO protocol, India had formally requested consultations with the US in April concerning the increased tariffs. However, the US rejected the consultation request, arguing that the duties were imposed on grounds of national security and therefore should not be treated as safeguard measures under WTO regulations.
Pankaj Chadha, chairman of the Engineering Exports Promotion Council, expressed support for India’s move, calling it a “positive development.” He added that this response might help his sector secure exemptions from the US-imposed tariffs.
“India’s proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the United States,” the WTO notification stated, underlining the principle of proportional retaliation. However, it did not disclose the specific goods likely to be affected by the new Indian tariffs.
The timing of this action is notable. India’s Commerce Minister Piyush Goyal is set to visit Washington from May 17 to 20 for trade discussions with members of the Trump administration. A source with knowledge of the matter, who requested anonymity due to the sensitive nature of the talks, confirmed that India’s proposed retaliatory measures would now form a key component of the discussions.
This episode represents a shift in tone from earlier in Trump’s presidency. During his first term, India responded to the US’s decision in 2019 to withdraw trade concessions on $5.7 billion worth of Indian goods by raising customs duties on 28 American products.
However, in Trump’s current term, India had been more accommodating. Earlier this year, New Delhi introduced sweeping reforms to its import tariff structure, cutting duties on around 8,500 industrial items. Notably, this included significant reductions on American products like bourbon whiskey and premium motorcycles from Harley-Davidson Inc. These moves were intended to address longstanding trade grievances voiced by President Trump.
Despite these efforts at conciliation, India’s recent WTO notification signals a firmer posture. Srivastava pointed out that “India’s move reflects a broader shift: a willingness to assert itself within global trade rules to protect its economic interests.”
The retaliation also coincides with broader international trade developments. Just hours before India submitted its WTO notice, the United States agreed to substantially lower tariffs on Chinese goods after Beijing refused to yield to Trump’s demands.
Adding to the tension, this latest move by India comes amid controversy over President Trump’s remarks linking trade with a recent ceasefire between India and Pakistan. At a White House event on Monday, Trump said, “If you stop it, we’re doing trade. If you don’t stop it, we’re not going to do any trade,” implying that trade with India might have been used as leverage in securing the ceasefire.
India promptly dismissed this suggestion. On Tuesday, May 13, a spokesman from the Ministry of External Affairs, Randhir Jaiswal, addressed the issue at a press conference in New Delhi. “There were conversations between Indian and US leaders on the evolving military situation,” he said. “The issue of trade did not come up in any of these discussions.”
With trade negotiations continuing and high-level visits planned, India’s decision to propose retaliatory tariffs places pressure on the upcoming talks. The move is both a signal of India’s readiness to defend its economic interests and a test of whether both sides can reconcile their differences to finalize a long-anticipated trade agreement.
By asserting its right to respond within the framework of WTO rules, New Delhi has shown it is prepared to push back while still maintaining diplomatic engagement. The outcome of Minister Goyal’s visit and the inclusion of India’s retaliation in negotiations may determine the trajectory of US-India trade relations going forward.