India has taken a tough stand in response to the heavy tariffs imposed by the US on steel and aluminum imports. India has informed the World Trade Organization (WTO) that it plans to increase import duty on some products coming from the US. In this article, we will tell you what this matter is, what will be its economic impact and why India took this step.
Beginning of the case: Tariffs on US steel and aluminium
In March 2018, former US President Donald Trump announced a 25% duty on steel and 10% duty on aluminium coming into the US, citing national security. Its purpose was to protect domestic industries from Chinese and other cheap goods. But this decision affected not only China but also many countries including India.
India is among the countries that are major exporters of steel and aluminium to the US. This move by the US caused huge losses to India’s trade. Tariffs
India’s response: Proposal to increase import duty
Now India has informed the WTO in a notice that it is going to increase tariffs on selected products coming from the US. This is a retaliatory action, which is called “suspension of concessions” in technical language. Tariffs
India has said that the US did not inform the WTO about increasing this tax, while this step is not right under GATT 1994 and WTO’s Agreement on Safeguards. India has made it clear that it will use its rights under Article 8 to impose uniform duty on those products so that the losses caused by the US steps can be compensated.
Impact on trade worth $7.6 billion
India has said that its exports worth about $7.6 billion have been affected by this move of America. If we talk about the duty imposed by America on these, then this figure goes up to $1.91 billion. Now, almost the same amount will be recovered from the products coming from America on which India will increase the duty.
India has also said that it will reserve the right to change the products and tariff rates from time to time.
Dispute resolution process in WTO
India’s move falls under the purview of WTO [World Trade Organization] which has been established to resolve trade disputes between countries. India has clarified that if necessary, it can modify or even withdraw its proposal.
If the two countries are unable to find a solution through mutual talks in WTO, then the matter goes to a panel which decides which country is following the rules of WTO.
Global impact and India’s strategy
This strategy of India not only sends a strong message to America, but also reflects India’s economic position and self-reliance on the global stage.
Now India is not just a reactionary country, but it is taking strategic steps to protect its interests. In response to this move of America, the European Union, Canada and other countries also imposed retaliatory tariffs. This shows that now no country is ready to sit silent in world trade.
Future Strategy: India’s Alternative Trade Network
India has now realized that it is not safe to depend too much on countries like America. Therefore, India is now engaged in diversifying its trade relations.
India’s focus is now also increasing on ASEAN, European countries and African markets, so that in future the decision of any one country does not have a negative impact on India’s economy.
Conclusion: Decisive India’s Global Strength
This move by India in response to the unfair tariffs imposed by the US is not only a symbol of economic strength, but also reflects India’s sovereignty and self-reliant thinking on the global stage. India is giving a clear message that it is no longer a country that will silently tolerate any trade injustice.
This development shows that India is now equipped with strong leadership, clear policy and strong will. Be it “nuclear blackmail” or any pressure tactics – India will respond to every move with diplomatic understanding and solid strategy. This is the new India – which not only responds, but also leads when needed.
Disclaimer: This article is for informational purposes only. Consult a certified financial advisor before investing. MoneyFlowInsight does not take responsibility for any investment decision based on this information
