India proposes retaliatory tariff on US imports to recoup $1.91 billion cost: A realistic strategy or a far-fetched dream?
After prolonged consultations and bilateral discussions with the United States regarding the 25 per cent tariffs on aluminium and steel exports, India has officially proposed the imposition of retaliatory duties under World Trade Organization (WTO) guidelines. These countermeasures, scheduled after 30 days from the notice, could take the form of suspending concessions previously extended to the US or adjusting tariff rates on select American imports. Through these measures, India aims to recover an estimated USD 1.9 billion, an amount it would require to pay to the US government for exporting USD 7.6 billion worth of aluminium and steel products.
According to a WTO communication cited by a PTI report, "The safeguard measures would affect $7.6 billion worth of imports into the U.S. of relevant products originating in India, on which the duty collection would be $1.91 billion."
India still considers the US tariffs on aluminium and steel imports as safeguard measures, even though President Donald Trump defended them as a necessary step for protecting the weakenening domestic manufacturing base due to persistent trade deficits driven by a surge in cheap imports sold at unfairly low prices, in addition to currency manipulation and exorbitant value-added taxes imposed on US exports by other countries.
Unlock full access – sign up for FREE.
Key benefits
The most-traded SHFE aluminium contract approached the critical level of 20,000, with processing fees under pressure, pulling back amidst generally sluggish trading volume
Next articleNovelis’ net sales for FY2025 grow by 6% Y-o-Y, backed by higher aluminium prices and increased flat-roll products shipment
Grow with
AL Circle
