India Proposes Retaliatory Duties Against US Over Steel, Aluminium Tariffs in WTO

India on Monday proposed to impose retaliatory duties under the WTO (World Trade Organisation) norms against the US over American tariffs on steel and aluminium in the name of safeguard measures. "The safeguard measures would affect USD 7.6 billion imports into the US of the relevant products originating in India, on which the duty collection would be USD 1.91 billion," a WTO communication said.

Accordingly, it said, India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in America. Earlier in April, India had sought consultations with the US under the WTO's safeguard agreement, following American authorities' decision to impose these tariffs.

On the request for consultation, the US informed the global trade body that its decision to impose the tariffs was based on national security grounds and should not be considered as safeguard measures. On March 8, 2018, the US promulgated safeguard measures on certain steel and aluminium articles by imposing 25 per cent and 10 per cent ad valorem tariffs, respectively.

It came into effect on March 23, 2018. It was extended in January 2020. On February 10 this year, the US again revised the safeguard measures on imports of steel and aluminium articles, effective from March 12, 2025, and with an unlimited duration. Now, it has imposed 25 per cent tariffs. "India hereby notifies the Council for Trade in Goods of its proposed suspension of concessions and other obligations...This notification is made in connection with safeguard measures extended by the United States of America on imports of aluminium, steel and derivative articles, vide Presidential Proclamation...dated 10 February 2025, with the effective date of 12 March 2025," a WTO communication said.

The communication, dated and received on May 9, 2025, is being circulated at the request of the delegation of India, it said. It added that the measures have not been notified by the US to the WTO, but are, in essence, safeguard measures. "India maintains that the measures taken by the US are not consistent with the GATT (General Agreement on Trade and Tariff) 1994 and AoS (Agreement on safeguards)," it said, adding that as consultations provided for under a provision of the AoS have not taken place, India reserves the right to suspend concessions or other obligations that are substantially equivalent to the adverse effects of the measure to India's trade. "The proposed suspension of concessions or other obligations takes the form of an increase in tariffs on selected products originating in the United States," it added.

Without prejudice to the effective exercise of its right to suspend substantially equivalent obligations, India reserves its right to suspend concessions after the expiration of thirty days from the date of this notification, it said. To ensure the effective exercise of its right to suspend substantially equivalent concessions, India also reserves its right to adjust the products as well as the tariff rates. "India reserves the right to withdraw, modify, supplement or replace this notification, and/or make a further notification or notifications as and when required," it added.

India will inform both the Council for Trade in Goods and the Committee on Safeguards of its next steps. India has taken up the tariff issue bilaterally also. The first Trump administration, in 2018, imposed a 25 per cent duty on certain steel items and a 10 per cent duty on aluminium products on the grounds of national security.

In retaliation, India in June 2019 slapped customs duties on 28 US products, including almonds and walnuts. India had also filed a complaint in the WTO. The proposal assumes significance as both countries are negotiating a bilateral trade agreement (BTA). The Indian team is also visiting this week to the US for trade talks.