US Trade Representative Robert Lighthizer has threatened further action against trading partners who have imposed retaliatory tariffs on US goods, specifically China and the EU, and stressed that the actions on trade in steel and aluminium by the US were legitimate.

The USTR statement assumes significance as his team of officials concluded a two-day meeting on Wednesday with Indian officials in New Delhi focussing on bringing down growing trade tensions between the two countries.

“We are trying to settle the matter of higher tariffs and retaliatory tariffs through dialogue with the US and are in close touch with the USTR. India hopes that the matter will be resolved soon,” a government official told BusinessLine .

Last week, India notified retaliatory tariffs on a number of US imports after Washington implemented higher duties of 10 per cent on aluminium and 20 per cent on steel imported from India citing security concerns. New Delhi, however, deferred implementation of the tariff hike to August 4 to have some room to sort out the matter with Washington.

Lighthizer, however, does not seem to be in a reconciliatory mood.

“President Trump has taken actions on trade in steel and aluminium to protect our national security interests. These actions are wholly legitimate and fully justified, both as a matter of US law and WTO rules. By contrast, the EU has concocted a groundless legal theory to justify immediate tariffs on US exports. Other WTO members, including China, have adopted a similar approach,” he said.

“Faced with these unjustified tariffs, the US will take all necessary actions under both US law and international rules to protect its interests,” he warned.