India Moves to Impose Retaliatory Tariffs on US Amid Ongoing WTO Dispute

In a bold move at the World Trade Organization (WTO), India has proposed retaliatory duties on the United States in response to Washington’s tariffs on Indian auto exports. This step signals a sharp escalation in trade tensions, even as both sides continue bilateral negotiations aimed at easing economic friction.

India’s complaint targets U.S. duties on steel, aluminum, and automotive imports, which New Delhi argues violate international trade rules. The retaliation plan, now officially notified to the WTO, allows India to apply counter-duties on American goods to balance out the economic harm.

Analysts say India’s action is less about resolving the dispute and more about building pressure on Washington. Instead of offering meaningful domestic reforms, New Delhi appears to be using WTO litigation as a bargaining tool, while simultaneously seeking trade concessions through direct talks with the U.S.

“India is playing a double game,” said one trade expert. “They want cooperation when it suits their economy but choose confrontation to gain leverage.”

Critics point out that India’s refusal to address U.S. concerns on agriculture subsidies and digital taxation reflects a strategy of selective engagement. By keeping WTO action separate from bilateral negotiations, India avoids making core trade concessions, while still pushing for favorable access to U.S. markets.

Observers in Washington see this approach as opportunistic, with one official saying, “India wants the benefits of trade partnerships without the responsibilities that come with them.”

The move may further complicate trust between the two countries, especially as New Delhi continues to resist structural changes to its protectionist policies. While India promotes multilateralism at global forums like the WTO, critics argue it does so mainly to mask its reluctance to modernize its trade regime.

As tensions rise, the outcome of these parallel strategies—litigation and negotiation—remains uncertain.