India's retaliatory tariff proposal to feature in trade talks with US

India to discuss proposed retaliatory tariffs on US goods during trade talks starting May 17, amid efforts to finalise a broader bilateral trade agreement targeting $500 billion by 2030

India's recent decision to invoke its right under World Trade Organisation (WTO) norms to impose retaliatory tariffs on certain American goods will be among the key issues discussed during trade talks with the United States starting May 17, according to a PTI report quoting unnamed officials.

 

Describing the move as a “pragmatic” one, the official clarified that India has not implemented the retaliatory measures yet, but has merely reserved the right to do so in accordance with WTO provisions. “What India has done is not something ‘unique or new’ and it is a ‘pragmatic’ approach which the country has taken in the WTO,” the official added.

 

 

The notification was issued on Monday in response to US-imposed tariffs on Indian steel and aluminium products. India, the official said, is using the WTO framework to preserve its rights while remaining engaged in negotiations. 

 

“We have reserved the right. It is to reserve the right to retaliate but we are not retaliating. We are negotiating with the US several issues, this will also be one of the issues on the trade negotiations," the official said, stressing that the intent is to continue discussions without waiving WTO entitlements.

 

“We do not want to lose any of our rights which we have been given under the WTO rules,” the official added.

 

India has taken similar steps in the past, including notifications submitted to the WTO in 2019 and 2021 regarding the European Union's steel safeguard measures, although those retaliatory actions have not been enforced.

Targeting $500 billion in bilateral trade

India and the United States are currently working towards a comprehensive trade agreement aimed at significantly increasing bilateral trade, which currently stands at $191 billion. The goal is to push this figure to $500 billion by 2030.

 

The next round of talks will take place in Washington, with a high-level Indian delegation led by Commerce and Industry Minister Piyush Goyal. The four-day negotiations, starting May 17, will involve meetings with US Trade Representative Jamieson Greer and US Commerce Secretary Howard Lutnick.

 

Commerce Secretary Sunil Barthwal confirmed that preparations are underway and the discussions are progressing. “Talks between India and the United States on a proposed bilateral trade agreement are moving ahead steadily,” he said.

 

The current discussions are focused on establishing an interim deal, especially in goods, that could offer early wins for both sides. A broader agreement is expected to be finalised later this year, possibly by September or October.

Jaishankar dismisses claims of zero-tariff deal

External Affairs Minister S Jaishankar clarified on Thursday that trade talks are still underway and that no deal has yet been finalised. His comments came in response to US President Donald Trump’s recent assertion that India had offered a deal involving “literally zero tariffs” on American goods. 

 

“Between India and the US, trade talks have been going on. These are complicated negotiations. Nothing is decided till everything is. Any trade deal has to be mutually beneficial; it has to work for both countries. That would be our expectation from the trade deal. Until that is done, any judgment on it would be premature,” Jaishankar told reporters.

Trump repeats zero-tariff claim

Speaking at a business forum in Qatar, President Trump claimed that India had proposed eliminating tariffs altogether on US exports. “It is very hard to sell in India. India has offered us a deal where basically they are willing to literally charge us no tariff,” he claimed.

 

Trump reiterated the claim, linking it to Apple’s recent announcement to manufacture all iPhones destined for the US market in India. “They’ve offered us a deal where basically they’re willing to literally charge us no tariff... They’re the highest, and now they’re saying no tariff,” he said.

 

While Trump has made similar assertions in the past, the Indian government has not officially responded to his latest comments.

 

These developments come as India attempts to finalise a trade agreement during a 90-day window in which new tariffs are on hold. The temporary pause follows the imposition of a 26 per cent tariff on Indian goods under the Trump administration’s trade policy.