• India proposes import duties on US products as retaliation against US tariffs.
• The proposed duties may affect approximately $7.6 billion worth of Indian exports.
• This move occurs concurrently with US-India trade negotiations for a new agreement.
• India aims to recover about $1.91 billion in duty losses from the US tariffs.
• The situation reflects ongoing trade tensions amidst broader bilateral discussions.

India has formally proposed to impose retaliatory tariffs on selected products from the United States, responding to US tariffs on steel and aluminium imports. This initiative, lodged with the World Trade Organization (WTO), aims to counteract what India considers unjust "safeguard measures" that impact around $7.6 billion worth of Indian exports, resulting in potential duty collections of approximately $1.91 billion, according to Reuters and India Times.

The notification to the WTO, dated May 12, reserves India's right to implement these duties 30 days after the notification, signaling a significant shift in India's trade strategy as commerce minister Piyush Goyal prepares for high-stakes negotiations in Washington. Experts have indicated that this retaliatory move could "cast a shadow" over trade deal talks, emphasizing the delicate balance between defending trade interests and maintaining diplomatic relations, as noted by India Times and South China Morning Post.

India has previously engaged with the WTO regarding trade disputes, and this current action is viewed as a formal dispute against the US tariffs that have drawn objections from various nations. The tariffs initially imposed by the US in 2018, citing national security concerns, have been a point of contention that reflects broader global trade conflicts, according to India Times and South China Morning Post.

Analysts suggest that India's action does not just signify a strategic pushback against unilateral US trade measures, but also demonstrates India's commitment to multilateral trading norms. While these proposed retaliatory tariffs signal a tougher stance, they also highlight India's desire to resolve issues amicably with the US through ongoing negotiations aimed at a bilateral trade agreement, according to India Times and South China Morning Post.