India informs WTO of tariff plan to counter US duties on steel

IANS May 13, 2025 335 views

India has escalated its trade conflict with the United States by formally notifying the World Trade Organisation about potential retaliatory tariffs on American goods. The dispute centers around US safeguard duties on Indian steel and aluminium exports, which could impact approximately $7.6 billion in trade. India argues that the US measures violate international trade agreements and is seeking to suspend equivalent trade concessions. While the proposed tariffs are still in the notification stage, the move signals India's strategic approach to challenging what it perceives as unfair trade practices.

"India maintains that the measures taken by the US are not consistent with GATT 1994" - Indian WTO Notification
India informs WTO of tariff plan to counter US duties on steel
New Delhi, May 13: India has informed the World Trade Organisation (WTO) that it proposes to impose retaliatory tariffs on select American goods, to counter the duties on Indian steel and aluminium exports levied by the US as safeguard duties.

Key Points

1

India proposes $1.91 billion in countertariffs against US import restrictions

2

WTO communication challenges US national security trade barriers

3

Bilateral trade negotiations continue amid dispute resolution

4

Potential economic impact on $7.6 billion of Indian exports

According to a WTO communication, these US safeguard measures would impact $7.6 billion worth of imports of Indian products, with an estimated duty collection of $1.91 billion.

In April, India requested consultations with the US under the WTO's safeguard agreement when the decision to levy the tariffs was announced.

The US stance at the WTO was that the tariffs on Indian goods were imposed on national security grounds and should not be regarded as safeguard measures.

India, in its notification to the WTO, announced its intent to suspend concessions and other obligations in response to the US safeguard measures on steel, aluminium, and related products, as outlined in a Presidential Proclamation dated February 10, 2025, with the measures set to take effect on March 12.

The WTO communication, dated May 9, 2025, was circulated at India's request. It noted that although the US has not formally notified these measures to the WTO, they are effectively considered safeguard measures.

"India maintains that the measures taken by the US are not consistent with the General Agreement on Trade and Tariff (GATT) 1994 and Agreement on safeguards (AoS)," 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," India's notification said.

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 30 days from the date of this notification, it further said.

While the proposed duties are still at the WTO notification stage, India is also close to finalising a new bilateral trade agreement with the Trump administration.

Reader Comments

R
Rajesh K.
Finally! India needs to stand firm against these unfair US tariffs. Why should our steel industry suffer because of their so-called "national security" excuses? This retaliatory move is justified and necessary to protect our economic interests. 🇮🇳
P
Priya M.
While I support protecting Indian industries, I hope this doesn't escalate into a full trade war. Many Indian IT companies depend on US business. The government should negotiate carefully - tit-for-tat might not always be the best solution.
A
Amit S.
US using national security as an excuse for protectionism is hypocritical. Our government is right to challenge this at WTO. But we should also focus on making Indian steel more competitive globally - better quality, lower production costs.
S
Sunita R.
Interesting timing with the new trade agreement being negotiated. Maybe this is just posturing before final talks? 🤔 Hope our negotiators get a good deal that benefits both countries without harming our industries.
V
Vikram J.
$1.91 billion is no small amount! This will directly affect thousands of Indian workers. The government must ensure alternative markets are found for our steel exports if the US market becomes difficult. Maybe focus more on Middle East and African markets?
N
Neha P.
While I appreciate India standing up for its rights, I worry about ordinary consumers. If we impose tariffs on US goods, won't that make many imported products more expensive? There should be a balance between protecting industries and not burdening citizens.

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Tags:
India WTO Trade Dispute US Tariffs Steel Exports International Trade Trump Administration
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