India is preparing to give a strong reply to Trump; up to 50% tariff will be imposed on American goods!

National News: After the US imposed a heavy import duty of up to 50% on Indian steel, aluminum, and related products, India is now preparing to retaliate. According to a report by Money Control, the government is considering imposing tariffs on selected US products in the same proportion as the loss suffered by Indian exporters. If this step is taken, it will be India's first formal response to President Donald Trump's tariff policy.

How the controversy started

The dispute began in February, when the Trump administration imposed a 25% tariff on Indian steel and aluminum. It was then increased to 50%, affecting Indian exports worth about $7.6 billion. India argued in the World Trade Organization (WTO) that the US action was a safeguard duty imposed in the name of 'national security,' which is against WTO rules. The US refused to negotiate on the matter, after which India began legal preparations for retaliation under WTO rules.

Which products can be subject to tariffs?

According to government sources, the retaliatory tariff will be imposed on a limited set of American goods. These goods will be selected in such a way that the revenue generated from the tariff is equal to the loss caused to Indian exporters by the US move. Officials say that on the one hand the US is talking about a bilateral trade agreement, but on the other hand it is taking unilateral steps against Indian economic interests, to which India has the right to respond.

Billions Of Dollars At Stake

The US sells more than $45 billion worth of goods to India every year, while India's exports to the US were up to $86 billion before the recent tariffs. An escalation of the tariff war could change the trade deficit and impact bilateral economic ties. In February, Prime Minister Narendra Modi and President Trump set a target of increasing trade to $500 billion, but India rejected US demands in agriculture and sensitive sectors, stalling the talks.