India should reciprocate if U.S. imposes additional duties on domestic goods: Trade experts

Trade experts warn India to respond equally if U.S. President Trump imposes higher tariffs on domestic goods.

India should respond with equal measures if the newly elected U.S. President Donald Trump imposes higher tariffs on domestic goods, trade experts say.

They noted that India has previously implemented retaliatory customs duties on several U.S. products, such as apples, in response to what it deemed "illegal" tariffs imposed by America on certain steel and aluminium products.

In December last year, Mr. Trump has said India charges "a lot" of tariffs, reiterating his intention to impose reciprocal tariffs in retaliation for what New Delhi will impose on the import of certain American products.

"India should respond firmly and in equal measures," economic think tank Global Trade Research Initiative (GTRI) Founder Ajay Srivastava said.

In 2018, when the U.S. taxed Indian steel and aluminium, India retaliated by raising tariffs on 29 U.S. products, recovering equivalent revenue.

"This measured response showed India's capability to protect its trade interests while staying balanced," Mr. Srivastava said.

He added that Indian exporters may face high customs duties for goods like automobiles, textiles and pharmaceuticals if the new U.S. administration decides to pursue the 'America First' agenda.