[By Guancha Observer Network, Chen Sijia] According to a May 13 report by Bloomberg, the Indian government has filed a complaint with the World Trade Organization (WTO), proposing to impose tariffs on some goods originating from the United States in response to the US's increased tariffs on steel and aluminum. The report indicates that this marks a shift in India's stance on trade issues and may be the first retaliatory measure taken by India since Trump's return to the White House.

The WTO document released on May 12 shows that India sent a letter to the organization on May 9, accusing the US of imposing a 25% tariff on steel and aluminum as a trade protection measure, stating that these measures have affected Indian exports worth $7.6 billion and are expected to generate $1.91 billion in tariffs. In response, India plans to increase tariffs on certain goods originating from the US.

The document did not mention which goods would be affected. The Indian government stated that it reserves the right to suspend trade preferences and other obligations and will notify the WTO Committee on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and the WTO Committee on Safeguards of its next steps.

In addition to steel and aluminum tariffs, Trump also threatened last month to impose a 26% "reciprocal" tariff on India. India had hinted at avoiding countermeasures and sought negotiations for a bilateral trade agreement with the US.

Reuters reported on May 9 that both India and the US are trying to "reach an agreement quickly." Indian officials have proposed cutting the current tariff gap with the US from nearly 13% to less than 4% in exchange for tariff exemptions from the Trump administration during negotiations.

However, Bloomberg pointed out that India's latest statement at the WTO marks a shift in New Delhi's position and may take the first retaliatory measure since Trump's presidency.

On April 8, containers at the Kolkata port in India Visual China

Ajai Srivastava, founder of the Global Trade Research Initiative of India, said: "India's latest action at the WTO was chosen at a delicate time when India and the US are exploring broader free trade agreements. Retaliatory measures may affect the prospects of the negotiations."

Srivastava believes that the Indian government has chosen a "more resolute position," and that India's actions reflect a broader shift: a willingness to defend itself within the framework of global trade rules to protect its economic interests.

During Trump's first term, India had taken retaliatory measures against the US. The Hindu pointed out that in June 2019, after the Trump administration decided to revoke India's Generalized System of Preferences (GSP) status, India imposed tariffs on 28 American goods.

Trump is using the Indo-Pakistani conflict to "make his case." On May 12, Trump claimed at a White House event that he had "mediated" the conflict between India and Pakistan through trade: "If you stop the conflict, we will trade. If you don't stop the conflict, we won't do any trade."

However, Indian officials quickly refuted Trump's claim, denying any connection between the ceasefire and US trade issues. An Indian official stated that trade was never discussed with US officials in the series of dialogues before the ceasefire.

This article is an exclusive contribution by Guancha Observer Network and cannot be reproduced without permission.

Original source: https://www.toutiao.com/article/7503914414932771378/

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