American safeguard measures would affect $7.6 billion worth of Indian exports, New Delhi has said

India has proposed higher and revised retaliatory tariffs against the US under World Trade Organization (WTO) regulations, according to a notification issued by the organization to members on Wednesday.

The tariffs, proposed even as the two countries negotiate a new trade deal, are in response to American duties on steel and aluminum, which are said to be "safeguard measures" by the administration of US President Donald Trump.

New Delhi's revised tariffs on US aluminum and steel will go up from 25 to 50%, according to the notification that was circulated by the WTO at India's request.

"India reserves its right to adjust the products and tariff rates," the notification said. "This request is made in response to the increase in the tariff rate by the US from 25% ad valorem to 50%."

India informed the WTO that American measures would affect $7.6 billion worth of Indian exports to the US, on which the duty collection would be $3.82 billion. "Accordingly, India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the US," the notification said.

The US imposed 26% tariffs on Indian goods in March as part of Trump's "Liberation Day" declarations, which included imports of aluminum, steel, and derivative products. On June 3, the tariffs were increased to 50%.

India approached the WTO with a proposal to impose retaliatory duties, on the grounds that the latest measures were an extension of what Trump had introduced in 2018 during his first term.

Jayant Dasgupta, former Indian envoy to the WTO, told CNBC that the ongoing trade tensions come at a time when the WTO's dispute resolution process is effectively stalled. "The US has blocked appointments to the appellate body for a number of years, and by December 2019, the appellate body of the WTO became non-functional," he said.

At the recently concluded BRICS Summit in Brazil, Indian Prime Minister Narendra Modi said that many nations lack proper representation in outdated global institutions. "Whether it's ongoing conflicts across the world, the pandemic, economic crises, or emerging challenges in cyber and space, these institutions have failed to offer effective solutions," he said.

Modi added that it is time to reform institutions like the UN Security Council, the WTO, and multilateral development banks.

(RT.com)