US Doubles Tariffs On Imported Steel, Aluminum To 50% Starting Today
The executive order coming to effect from Wednesday takes the 25 per cent tariffs on steel and aluminium levied on both metals on March 12 to 50 per cent
By : Sangeetha G
Update: 2025-06-04 02:51 GMT
Chennai: The United States doubled steel and aluminium tariffs to 50 per cent from Wednesday as President Donald Trump signed an executive proclamation. Instead of fighting the US at WTO, India should push on eliminating or reducing the tariffs under the Bilateral Trade Agreement.
The executive order coming to effect from Wednesday takes the 25 per cent tariffs on steel and aluminium levied on both metals on March 12 to 50 per cent.
India and some of the other WTO members, including Russia, Japan, China and Switzerland, have opposed the US’ imposition of tariffs under the Safeguards agreement without notifying the WTO.
However, the US has argued that the tariffs are not safeguard duties, but “measures for national security”.
After rejecting India’s claim, the US has now doubled the tariffs.
One option before India is to launch a formal WTO dispute, not under the Safeguards Agreement but under broader GATT rules, challenging the Section 232 tariffs as disguised protectionist actions. India could argue that the US is abusing the national security exception.
“However, this legal route carries risks, as the US has a history of ignoring WTO rulings on national security and could appeal any adverse decision into the WTO Appellate Body, which remains non-functional and unable to enforce outcomes,” said GTRI.
India can impose retaliatory tariffs without WTO authorization. Other countries like the EU, Canada, and China have done this against the US Section 232 tariffs as a political signal of resistance. While this sends a clear message, it also brings the risk of US countermeasures and possible legal battles.
“Instead, India could take a pragmatic route by using the ongoing bilateral Free Trade Agreement (FTA) negotiations with the U.S. as the main platform to settle the issue. By pushing the US to eliminate or reduce the Section 232 tariffs on steel and aluminium as part of the FTA deal, India could secure a negotiated solution that addresses its concerns while avoiding the lengthy and uncertain process of legal action or retaliation,” said GTRI.
“The UK through its trade deal with the US recently got exemptions from the tariff on steel and aluminium. India should also ask for the same kind of waiver during the ongoing bilateral trade agreement (BTA) negotiations with the US,” said Pankaj Chadha, chairman, EEPC.
The executive order coming to effect from Wednesday takes the 25 per cent tariffs on steel and aluminium levied on both metals on March 12 to 50 per cent.
India and some of the other WTO members, including Russia, Japan, China and Switzerland, have opposed the US’ imposition of tariffs under the Safeguards agreement without notifying the WTO.
However, the US has argued that the tariffs are not safeguard duties, but “measures for national security”.
After rejecting India’s claim, the US has now doubled the tariffs.
One option before India is to launch a formal WTO dispute, not under the Safeguards Agreement but under broader GATT rules, challenging the Section 232 tariffs as disguised protectionist actions. India could argue that the US is abusing the national security exception.
“However, this legal route carries risks, as the US has a history of ignoring WTO rulings on national security and could appeal any adverse decision into the WTO Appellate Body, which remains non-functional and unable to enforce outcomes,” said GTRI.
India can impose retaliatory tariffs without WTO authorization. Other countries like the EU, Canada, and China have done this against the US Section 232 tariffs as a political signal of resistance. While this sends a clear message, it also brings the risk of US countermeasures and possible legal battles.
“Instead, India could take a pragmatic route by using the ongoing bilateral Free Trade Agreement (FTA) negotiations with the U.S. as the main platform to settle the issue. By pushing the US to eliminate or reduce the Section 232 tariffs on steel and aluminium as part of the FTA deal, India could secure a negotiated solution that addresses its concerns while avoiding the lengthy and uncertain process of legal action or retaliation,” said GTRI.
“The UK through its trade deal with the US recently got exemptions from the tariff on steel and aluminium. India should also ask for the same kind of waiver during the ongoing bilateral trade agreement (BTA) negotiations with the US,” said Pankaj Chadha, chairman, EEPC.