News Brief
India Plans $1.1 Billion Retaliatory Tariffs Against EU Steel Restrictions—What You Need To Know
India and EU flags | Representational image | Twitter | @EU_in_India
India is likely to impose additional tariffs amounting to $1.1 billion on some EU-origin products in retaliation against the bloc's extended safeguard duties on its steel imports.
The process of finalising the list of items, on which the tariffs will be imposed, has commenced.
“We are working on the products that would be subject to higher tariffs. These will mostly be steel products,” an official was quoted as saying by The Economic Times.
Talks between India and the EU have not yielded an agreement on the concessions that could alleviate the negative effects of the EU's extended safeguard duties on some steel imports, which will now remain in place until 2026.
India reportedly informed the World Trade Organization (WTO) about its intent to levy additional tariffs on Wednesday (18 September).
“The issue could be taken up at the next round of bilateral free trade talks with the EU next week,” another official was quoted as saying by ET.
India informed the WTO that the EU's safeguard measures, which generated $1.1 billion in duties for the bloc, led to a trade loss of $4.4 billion for India from 2018 to 2023.
India's exports of iron, steel, and related products to the EU rose from $6.1 billion in FY23 to $6.64 billion in FY24.
India, along with China, Russia, and five other nations, had slammed the EU's decision to extend the levy on specific steel products, arguing that it violated WTO rules.
The measures were originally imposed in response to the US’s additional duties on steel imports from the EU in 2018.
India retaliated against US-imposed duties on its steel and aluminium exports by placing additional tariffs on 28 American products.
However, both countries agreed to withdraw their WTO disputes and the additional duties last year.
