Winning Bizness Desk

Mumbai.India is preparing to hit back at the United States with tariffs of up to 50% on select American products, in what could be its first formal retaliation against President Donald Trump’s aggressive trade measures. The move comes after Washington slapped steep duties on Indian steel, aluminum, and other goods, citing national security concerns.

Double tariff blow from Washington

From August 7, the US imposed a 25% tariff on Indian exports. An additional 25% will take effect on August 27. The measures target key sectors such as metals, which have been at the center of a dispute since February. In June, the US doubled the levy to 50%, impacting Indian shipments worth an estimated $7.6 billion.

India’s case at WTO, talks collapse

New Delhi has challenged the US duties at the World Trade Organization, arguing they are disguised safeguard measures that violate global trade rules. Washington refused to negotiate, and sources say India is now legally ready to retaliate under WTO provisions. Earlier efforts to strike a $500 billion trade deal collapsed after India rejected US demands for deeper access in agriculture and other sensitive areas.

High stakes for both economies

The US exports more than $45 billion worth of goods to India annually, while India sells around $86 billion to the US. Any counter-tariff from New Delhi could sharply alter the trade balance. Washington’s latest penalty also followed its objection to India’s continued oil imports from Russia.

Beyond metals: a wide trade web

The US shipped $13.62 billion worth of energy products to India in 2024-25, along with electronics, chemicals, and other goods. Services are a major pillar of bilateral trade, valued at $83.4 billion last year. The US enjoyed a modest surplus, with service exports to India rising 16% to $41.8 billion.

Political and economic ripple effects

Analysts warn that a tit-for-tat tariff battle could spill into other trade sectors, hardening positions ahead of any renewed negotiations. With both governments heading into politically sensitive periods, neither appears willing to back down.

The story in seven points

• India mulls up to 50% tariffs on select US goods
• Move follows US duties on Indian steel, aluminum, other products
• US tariffs to double from August 27 for some items
• Dispute tied to India’s oil imports from Russia
• India challenges US move at WTO, prepares legal retaliation
• $500 billion trade deal talks collapsed over sensitive sectors
• Bilateral trade spans metals, energy, electronics, chemicals, and services