By Bharat Global Time Staff | May 25, 2025
Geneva/New Delhi — Trade tensions between India and the United States escalated sharply this week after New Delhi imposed high retaliatory tariffs on 29 American products, prompting a strong reaction from Washington at the World Trade Organization (WTO).
The U.S. delegation raised the issue during a special trade council session in Geneva, accusing India of triggering an “unjustified escalation” and labeling the move a “national security concern.” Washington claimed the tariffs could disrupt strategic supply chains and harm American farmers and manufacturers.
“These unilateral trade actions by India compromise our economic security. We are evaluating all options, including raising this through formal dispute mechanisms,” a U.S. trade representative said.
Why Did India Impose the Tariffs?
India’s Ministry of Commerce justified the tariffs as a “legitimate and proportionate response” to earlier U.S. actions—primarily Washington’s continued import duties on Indian steel and aluminum, as well as the withdrawal of India’s GSP (Generalized System of Preferences) benefits.
The targeted items in India’s new tariff list include almonds, walnuts, apples, lentils, chickpeas, boric acid, phosphoric acid, and several industrial goods.
“India will not be a silent spectator when its economic interests are hurt. These measures are in line with WTO norms and are meant to protect our producers,” said an Indian trade official in Delhi.
What Are the Tariff Rates?
According to initial reports:
- Almonds and Walnuts: Up to 120% import duty
- Apples and Pulses: Duties raised by 70% to 100%
- Industrial Chemicals and Metals: Custom hikes of 30% to 50%
These hikes are expected to significantly impact U.S. exporters, particularly in California’s agricultural belt and Midwest chemical industries, both of which rely heavily on Indian markets.
WTO in a Tight Spot
At the WTO, diplomats are walking a fine line. While India argues its right to retaliate under WTO’s dispute settlement provisions, the U.S. insists the issue touches on “national security exceptions” under Article XXI of the WTO rules—an area that is rarely litigated and notoriously vague.
“If everything becomes a national security issue, then WTO rules mean nothing,” said a trade expert familiar with the discussions.
🇮🇳🇺🇸 What’s Next?
The developments come at a time when both countries are trying to deepen their strategic partnership in defense and technology. However, trade has remained a sticking point for years, often flaring into disputes despite top-level diplomacy.
Analysts suggest that while a full-blown trade war is unlikely, the matter could strain upcoming bilateral trade talks scheduled later this year.
At a Glance:
- India imposes tariffs on 29 U.S. items
- U.S. raises issue at WTO, calls it a national security concern
- Items affected: Almonds, apples, chemicals, pulses
- Tariff rates: 30% to 120%
- Next step: Possible WTO legal battle or diplomatic negotiations
Editor’s Note: Bharat Global Time will continue tracking this developing story from both Geneva and New Delhi. For updates on affected sectors and the political fallout, stay tuned.
