India Proposes Retaliatory Tariffs on US, Notice to WTO Shows
India will select the products on which the retaliatory tariffs will be imposed. The development could cast a shadow on the ongoing trade talks
By : Sangeetha G
Update: 2025-05-13 06:57 GMT
Chennai: India has informed the World Trade Organisation that it was withdrawing concessions given to US imports earlier and proposed to levy retaliatory tariffs on the US for imposing safeguard duties on aluminium and steel. India will select the products on which the retaliatory tariffs will be imposed. The development could cast a shadow on the ongoing trade talks.
The safeguard duties of 25 per cent imposed on steel and aluminium and their derivatives by the US, which came to effect from March 12, have not been notified by the United States to the WTO, but are, in essence, safeguard measures, India said in a notification issued by the WTO.
“India maintains that the measures taken by the United States are not consistent with the GATT 1994 and Agreement of Safeguards (AoS). As consultations provided for under Article 12.3, AoS have not taken place, India reserves the right to suspend concessions or other obligations under Article 8, AoS that are substantially equivalent to the adverse effects of the measure to India’s trade,” India said.
India had come into a consensus with the US at the WTO during the Joe Biden rule on the tariffs on steel and aluminium imposed during the previous Donald Trump administration in 2019. As per this, Biden administration provided exemption on certain import categories of steel and aluminium and India provided concessions on 28 products imported by it, including almonds and walnuts, which were subjected to retaliatory tariffs, said Pankaj Chadha, chairman of EEPC.
“After the new Trump regime imposed tariffs again on steel and aluminium and their derivatives after withdrawing the exemptions, India went to the WTO in February informing that the US had unilaterally withdrawn the exemptions. The US replied that they were not safeguard duties but “measures for national security”, said Chadha.
Upon this, India has now informed that they are safeguard duties in essence and proposed to take back the concessions while imposing retaliatory tariffs on the US.
Agreement on Safeguards allows a country to retaliate when another member imposes safeguard measures without proper notification or consultations.
The safeguard measures would affect $7.6 billion imports into the United States of the relevant products originating in India, on which the duty collection would be $1.91 billion.
India reserves its right to suspend concessions or other obligations after the expiration of thirty days from the date of this notification, the WTO notification said.
To ensure the effective exercise of its right to suspend substantially equivalent concessions or other obligations, India reserves its right to adjust the products as well as the tariff rates, it said. India will select the products it wants to impose retaliatory tariffs on, said GTRI.
“India’s latest WTO action comes at a delicate moment. New Delhi and Washington are exploring a broader Free Trade Agreement, and this retaliation could cast a shadow over negotiations. Still, India’s calibrated, rules-based approach contrasts with the unilateralism of U.S. trade actions and positions India as a staunch defender of multilateral trade norms,” said Ajay Srivastava, founder, GTRI.
The safeguard duties of 25 per cent imposed on steel and aluminium and their derivatives by the US, which came to effect from March 12, have not been notified by the United States to the WTO, but are, in essence, safeguard measures, India said in a notification issued by the WTO.
“India maintains that the measures taken by the United States are not consistent with the GATT 1994 and Agreement of Safeguards (AoS). As consultations provided for under Article 12.3, AoS have not taken place, India reserves the right to suspend concessions or other obligations under Article 8, AoS that are substantially equivalent to the adverse effects of the measure to India’s trade,” India said.
India had come into a consensus with the US at the WTO during the Joe Biden rule on the tariffs on steel and aluminium imposed during the previous Donald Trump administration in 2019. As per this, Biden administration provided exemption on certain import categories of steel and aluminium and India provided concessions on 28 products imported by it, including almonds and walnuts, which were subjected to retaliatory tariffs, said Pankaj Chadha, chairman of EEPC.
“After the new Trump regime imposed tariffs again on steel and aluminium and their derivatives after withdrawing the exemptions, India went to the WTO in February informing that the US had unilaterally withdrawn the exemptions. The US replied that they were not safeguard duties but “measures for national security”, said Chadha.
Upon this, India has now informed that they are safeguard duties in essence and proposed to take back the concessions while imposing retaliatory tariffs on the US.
Agreement on Safeguards allows a country to retaliate when another member imposes safeguard measures without proper notification or consultations.
The safeguard measures would affect $7.6 billion imports into the United States of the relevant products originating in India, on which the duty collection would be $1.91 billion.
India reserves its right to suspend concessions or other obligations after the expiration of thirty days from the date of this notification, the WTO notification said.
To ensure the effective exercise of its right to suspend substantially equivalent concessions or other obligations, India reserves its right to adjust the products as well as the tariff rates, it said. India will select the products it wants to impose retaliatory tariffs on, said GTRI.
“India’s latest WTO action comes at a delicate moment. New Delhi and Washington are exploring a broader Free Trade Agreement, and this retaliation could cast a shadow over negotiations. Still, India’s calibrated, rules-based approach contrasts with the unilateralism of U.S. trade actions and positions India as a staunch defender of multilateral trade norms,” said Ajay Srivastava, founder, GTRI.