India has initiated retaliatory tariffs on a number of American products at the World Trade Organisation (WTO) opposing the US safeguard duties on steel and aluminium. This move demonstrates the aggressive position New Delhi has to take in safeguarding its metal exports, an important niche in the industrial base of India.
India told the WTO, “The safeguard measures would affect $7.6 billion imports into the US of the relevant products originating in India, on which the duty collection would be $1.91 billion.” The proposed response will be suspension of concessions and levying additional tariffs on some US origin products.
The dispute started with the US announcement on March 8, 2018, to impose 25% tariffs on steel and 10% tariffs on aluminium, based on national security concerns. Revised on February 10, 2025, the measures remain contentious. India claims the US failed to notify the WTO Committee on Safeguards and is now seeking consultations with Washington. “It is a rebalancing of the concessions lost due to the safeguard measure imposed by the US. India is authorised under the Agreement on Safeguards (AoS) to take this measure,” said an official.
India maintains that the US actions are inconsistent with the General Agreement on Tariffs and Trade (GATT) 1994 and the AoS. “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. The development comes as India and the US pursue a Bilateral Trade Agreement, aiming to double trade to $500 billion by 2030.
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