India has proposed to double the retaliatory tariffs it plans to impose on the United States under World Trade Organization norms in response to Washington hiking import duties on aluminium and steel, reported PTI on Friday.

In a communication circulated among members of the organisation on Wednesday, India reportedly said that the reciprocal tariffs would apply to $7.6 billion worth of American goods and lead to a duty collection worth $3.82 billion.

On May 9, India had notified the World Trade Organization that it may impose retaliatory tariffs on the US after Washington increased the import duties on aluminium and steel to 25%. The previously proposed retaliatory measures would have led to a duty collection of $1.9 billion.

US President Donald Trump on June 3 announced that his administration will double the tariffs on steel to 50%.

In the communication shared by the World Trade Organization, India said that it “reserves its rights to adjust the products and tariff rates”, reported PTI.

“This request is made in response to the increase in tariff rate by the US from 25% ad valorem to 50%,” it added.

The revision came even as India and the United States are in the middle of negotiating a bilateral trade deal.

The Trump administration had first imposed higher tariffs on aluminium and steel imports in 2018.

This was modified in February to impose duties of 25% on imports of the two metals. The measures took effect in March.

Washington also removed country-specific and product-specific exemptions that several countries had managed to negotiate.

While Washington has claimed that the increased tariffs had been taken in the interest of national security and were not safeguard measures, New Delhi argued that the actions were safeguard measures.

“The measures have not been notified by the United States to the WTO, but are, in essence, safeguard measures,” The Hindu had quoted India as having communicated to the international organisation in May. “India maintains that the measures taken by the United States are not consistent with the General Agreement on Tariffs and Trade 1994 and the Agreement on Safeguards.”


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