India plans tariff response to US over steel, aluminium levy

INDIA PREPARED LEGAL GROUNDS FOR RETALIATORY ACTION UNDER WTO RULES, PEOPLE AWARE OF THE MATTER SAID

- Rajeev Jayaswal

India may slap tariff countermeasures on select American commodities, a retaliation to Washington's move to impose a steep 50% duty in June on steel, aluminium and their derivatives from India, people aware of the matter have said.

To be sure, the levies on steel and aluminium have played out as a parallel trade dispute at the World Trade Organization, but its timing would make it the first Indian retaliation since Trump's July 31 announcement of the 25% tariff on all Indian goods entering the US when trade talks failed to reach a breakthrough and his subsequent penalties over Russian oil purchases announced on August 6.

According to people aware of the matter, India has prepared legal grounds for the retaliatory action on steel and aluminium under World Trade Organization rules after the US rejected New Delhi's request for consultations over what India considers WTO-non-compliant safeguard measures disguised as national security actions. “Washington is unwilling to address New Delhi's concerns through talks, which leaves India with little option other than to retaliate,” one person said.