India's recent move to reserve its right to impose retaliatory tariffs on US goods at the World Trade Organization (WTO) is a significant development in the ongoing trade tensions between the two countries. This decision comes as India and the US are negotiating an interim trade agreement, with a team of US officials visiting India this week for discussions.
The move may be seen as a strategic response to the recent US Court of International Trade ruling that tariffs imposed by former President Trump's "Liberation Day" were illegal. According to Wendy Cutler, vice president at the Asia Society Policy Institute, this decision has thrown President Trump's trade policy into turmoil. This development could potentially benefit India in its ongoing trade deal negotiations with the US.
India's decision at the WTO also underscores the country's growing assertiveness in international trade negotiations. The move may have implications for other countries negotiating with the US, as they consider their own strategies during this critical period of tariff uncertainty.
Commerce Minister Piyush Goyal visited Washington last month to boost trade talks, and Special Secretary Rajesh Agrawal led Indian negotiations in the city.