India on Monday informed the World Trade Organization (WTO) that it will impose $1.91 billion of levies on imports from the US in retaliation against Trump’s move but left a 30-day window for talks, showed a communication from New Delhi to the global trade body.
The people cited above said American goods that could attract tariffs will be those with significant trade value and “strategic relevance”, including agricultural produce, petrochemicals and high-end medical devices.
The move signals New Delhi toughening its posture amid ongoing trade talks with the US on its tariffs hikes. It comes at a time when the UK and China have reached an understanding with the US, but only to lower – not eliminate – US tariffs.
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According to Reuters, Goyal will lead a trade delegation to the US starting 16 May to advance trade negotiations, two government officials said on Tuesday, as both countries push for a bilateral trade pact.
The commerce ministry did not immediately respond to an e-mailed request for comment.
New Delhi is seeking to clinch a trade deal with the US within the 90-day pause on tariff hikes announced by Trump on 9 April for major trading partners, including a 26% tariff on India.
A 10% base tariff continues to apply to India and many other nations during the pause.
The US is India’s largest trading partner, with bilateral trade totalling some $129 billion in FY25. The trade balance is currently in favour of India, which runs a $45.7 billion surplus with the US.
India has not officially disclosed what products from the US it will target for retaliation, but almonds, apples, chickpeas and lentils have figured in similar moves by India in the past.
India’s action is under the WTO’s agreement on safeguards and is in response to Trump’s 10 February-move extending the 25% additional tariff on steel articles and 10% additional tariffs on aluminium goods with effect from 12 March.
These measures, introduced in 2018 and extended in 2020, are likely to affect Indian exports worth $7.6 billion, on which the duty collection would be $1.91 billion.
“Accordingly, India’s proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the United States,” India’s communication to WTO stated.
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“This is a calibrated and legally backed step. We are not acting in haste but exercising our rights under the WTO framework to protect our economic interests,” said the first person quoted above.
Steel and aluminium are thought to be politically sensitive industries that form the backbone of India’s Make in India initiative and are critical for job creation and industrial growth.
The retaliatory list could include items that have strategic trade relevance and will deliver a proportionate economic impact without harming domestic consumers, said the second person cited above.
“Unless consultations are initiated or the US measures are withdrawn, India’s retaliatory tariffs may come into effect 30 days from the notification date—on 8 June 2025. India has also reserved the right to adjust product coverage and tariff rates to ensure a proportional economic response, signalling its determination to use WTO mechanisms robustly,” said Ajay Srivastava, former trade service official and founder of economic think tank Global Trade Research Initiative.
India said in its communication that the measures announced by the US were not notified to the WTO, but are, in essence, safeguard measures. New Delhi also said it will inform both WTO’s Council for Trade in Goods and Committee on Safeguards on its next steps.
The timeline of India’s move at the WTO notably coincides with the United States’ 90-day pause on its reciprocal tariffs targeting Indian exports. This temporary suspension, which lasts until 8 July 2025, had offered a brief window for both sides to explore a negotiated settlement. However, unless a breakthrough is reached, Indian goods exported to the US will face an additional 26% duty across the board once the pause ends.
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Experts said that the absence of mandatory consultations under Article 12.3 of the Agreement on Safeguards has strengthened India’s case for retaliatory action.
India’s latest WTO move comes at a sensitive time, as New Delhi and Washington explore a broader Free Trade Agreement.
While the retaliation may add friction to ongoing talks, India’s measured, rules-based response contrasts with the unilateral nature of US trade actions, reinforcing New Delhi’s commitment to multilateral norms.
The action also signals a firmer Indian stance on trade, particularly in politically and strategically important sectors like steel and aluminium, in line with its Make in India push.
“Much now depends on Washington’s response. If the US engages in consultations or withdraws the contested measures, a resolution may be reached. Otherwise, India’s tariff response could take effect in early June, potentially affecting US exporters and deepening trade frictions,” Srivastava added.
Industry executives said that for sectors with close global supply chain linkages, tariffs can be disruptive.
“We’ve experienced these challenges firsthand. For the instrumentation sector, which is closely linked to global supply chains, such tariffs have disrupted sourcing strategies and hurt export competitiveness. By raising this at the WTO, India is sending a clear message that future trade agreements must be anchored in fairness and reciprocity,” said Sarvadnya Kulkarni, CEO of General Instruments Consortium, a manufacturer of precision instruments.
Queries sent on Tuesday to the ministry of commerce were not immediately answered.
In 2019, India had imposed higher tariffs on 28 US products, including almonds and apples, after the US ended India’s preferential access under the Generalized System of Preferences (GSP) and maintained duties on Indian steel and aluminium. That dispute was resolved in 2023 following Prime Minister Modi’s visit to Washington. The current move indicates that India is no longer willing to remain passive in the face of repeated trade curbs, added Srivastava of GTRI.
Gireesh Chandra Prasad contributed to this story.
