(MENAFN) India has notified the World Trade Organization (WTO) of its intention to impose higher retaliatory tariffs on the United States in response to Washington’s increased duties on steel and aluminum. The announcement was made through a WTO notification circulated to member states on Wednesday.

Under the proposed measures, India plans to raise tariffs on US steel and aluminum imports from 25% to 50%. These tariffs come despite ongoing negotiations between New Delhi and Washington on a new trade agreement. India described the move as a counter to what it calls “safeguard measures” introduced by the Trump administration.

According to the WTO filing, India stated that US tariffs would impact $7.6 billion worth of Indian exports, with an estimated $3.82 billion in duties collected by Washington. India’s retaliatory measures aim to match that value by targeting American goods.

The US raised tariffs on Indian products, including steel, aluminum, and related goods, from 26% in March to 50% in June as part of President Trump’s so-called “Liberation Day” trade actions. India argues these latest measures are simply an extension of the tariffs Trump imposed during his first term in 2018.

Jayant Dasgupta, India’s former WTO envoy, told CNBC that the situation is complicated by the WTO’s weakened dispute resolution system, which has been paralyzed since 2019 due to Washington blocking appointments to the appellate body.

At the recent BRICS summit in Brazil, Indian Prime Minister Narendra Modi criticized outdated global institutions like the WTO, the UN Security Council, and multilateral banks, arguing they no longer reflect the realities of today’s world or offer effective solutions to modern crises. Modi called for urgent reforms to make these bodies more representative and relevant.

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