India has formally notified the World Trade Organization (WTO) of its intention to impose retaliatory tariffs on select U.S. products. This move comes in response to the United States' decision to reimpose 25% tariffs on steel and aluminum imports, a policy originally introduced in 2018 during President Donald Trump's first term and reinstated in March 2025.

In its communication to the WTO dated May 12, India stated that these U.S. measures adversely affect approximately $7.6 billion worth of Indian exports. The proposed countermeasures involve increasing tariffs on unspecified U.S. products, aiming to offset the economic impact of the American duties.

This development occurs amidst ongoing trade negotiations between the two nations. India has offered to reduce its average tariff gap with the U.S. by two-thirds, seeking to address longstanding concerns over its high import duties. In return, India is requesting greater market access for its exports, including sectors like gems and jewelry, textiles, and agricultural products.

The U.S. administration has labeled India a "tariff abuser," citing its high import tariffs as a barrier to fair trade. The reinstatement of steel and aluminum tariffs is part of a broader strategy to address trade imbalances and protect domestic industries.

India's decision to consider counter-duties reflects its commitment to defending its economic interests while engaging in diplomatic efforts to resolve trade disputes. The outcome of these negotiations will significantly influence the future of U.S.-India trade relations.

As both countries navigate this complex trade landscape, stakeholders across various industries will be closely monitoring developments, given the potential implications for global supply chains and international commerce.