๐ฎ๐ณ๐บ๐ธ *BREAKING:* India has formally notified the World Trade Organization (WTO) of its intent to impose *retaliatory tariffs* on U.S. goods, escalating trade tensions between the two nations. This move comes in response to the U.S. increasing tariffs on steel and aluminum imports, which India deems unjustified.
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๐ *Whatโs Happening:*
- *U.S. Tariff Hikes:* In March 2025, the U.S. raised import duties on aluminum, steel, and related goods to 25%, which were further increased to 50% in June.
- *India's Response:* India plans to impose retaliatory tariffs on U.S. goods worth approximately 3.82 billion, a significant increase from the earlier estimate of1.91 billion.
- *WTO Notification:* India has submitted a revised proposal to the WTO, stating its right to suspend concessions or other obligations equivalent to the adverse effects of the U.S. measures.
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๐ *Economic Implications:*
- *Trade Talks in Jeopardy:* These developments come amid ongoing negotiations for a Bilateral Trade Agreement (BTA) between India and the U.S. An Indian delegation is scheduled to visit Washington to continue discussions.
- *Impact on Industries:* The retaliatory tariffs could affect various sectors, including agriculture, dairy, and automotive components. For instance, U.S. tariffs on automobiles and auto parts could impact $2.89 billion of Indian exports.
- *Investor Sentiment:* Despite the escalating trade tensions, investors have largely dismissed threats of high tariffs, such as the proposed 200% tariff on pharmaceuticals, viewing them as unlikely to materialize.
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๐ฎ *Looking Ahead:*
- *Negotiation Dynamics:* India's firm stance at the WTO indicates a strategic move to assert its rights within international trade regulations while continuing bilateral negotiations.
- *Potential Outcomes:* The success of upcoming trade talks will depend on both nations' willingness to compromise, particularly on contentious issues like agriculture and dairy sector access.