NewKerala.com

Key Points

India has formally notified the WTO of its intent to impose retaliatory tariffs on US imports, citing $1.9 billion in losses from extended American duties on steel and aluminium. The proposed measures mirror the US tariffs of 25% on steel and 10% on aluminium, which were recently extended until 2025. New Delhi argues these US actions violate global trade rules and has given Washington 30 days to resolve the dispute. If no agreement is reached, India's counter-tariffs could take effect by early June.

Key Points: India Proposes $1.9bn WTO Tariffs on US Over Steel Aluminium Duties

  • India cites $1.9bn losses from US steel tariffs
  • Plans WTO-approved retaliatory duties on US imports
  • US extended 25% steel, 10% aluminium duties in 2025
  • Deadline for resolution set for early June
2 min read

India moves WTO- Proposes safeguard duty for losses of USD 1.9bn due to US tariff on Steel & Aluminium

India seeks WTO approval for retaliatory tariffs on US imports after $1.9bn losses from extended steel and aluminium duties.

"The safeguard measures would affect $7.6 billion imports into the United States of the relevant products originating in India – WTO Notification"

New Delhi, May 13

India has officially informed the World Trade Organization (WTO) that it plans to impose retaliatory tariffs on imports from the United States. This move comes as a response to the US extending its safeguard duties on steel, aluminium, and related products.

India estimates that these US measures have caused it a loss of around USD 1.91 billion.

In a formal notification to the World Tarde Organisation (WTO's) Council for Trade in Goods, India said it intends to suspend concessions and other trade obligations under Article 8.2 of the Agreement on Safeguards (AoS), in connection with the measures imposed by the United States.

The suspension is proposed under Article 12.5 of the same agreement. If not resolved, the proposed retaliatory tariffs could come into effect after 30 days.

It said "The safeguard measures would affect USD 7.6 billion imports into the United States of the relevant products originating in India, on which the duty collection would be USD 1.91 billion.

Accordingly, India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the United States".

The United States had unilaterally imposed 25 per cent tariff on steel and 10 per cent tariff on aluminium imports through Presidential Proclamations No. 9704 and 9705 on 8 March 2018.

These duties were extended in January 2020 and again recently on 10 February 2025, through Presidential Proclamations No. 10895 and 10896. These new measures will be effective from 12 March 2025.

India argues that although the US has not formally notified these actions as safeguard measures at the WTO, the duties are essentially functioning as such.

India also maintains that these US measures are inconsistent with the General Agreement on Tariffs and Trade (GATT) 1994 and the Agreement on Safeguards.

India said the affected imports of steel and aluminium from India to the US were worth USD 7.6 billion, and the additional duties resulted in USD 1.91 billion in losses to Indian exporters.

Since no consultations have taken place under Article 12.3 of the AoS, India is now seeking to suspend equivalent concessions by imposing similar duties on US products.

Much now depends on Washington's response. If the U.S. engages in consultations or withdraws the contested measures, a resolution may be reached. Otherwise, India's tariff response could take effect in early June.

- ANI

Share this article:

Reader Comments

R
Rahul K.
Finally, our government is standing up against unfair trade practices! The US can't keep bullying developing nations with unilateral tariffs. India's steel industry employs lakhs of workers - we must protect our interests. 🇮🇳
P
Priya M.
While I support protecting Indian industries, I hope this doesn't escalate into a full trade war. Many Indian tech companies depend on US partnerships. There should be more dialogue before imposing retaliatory tariffs.
S
Sanjay T.
$1.9 billion is no small amount! The US has been taking advantage for too long. Atithi Devo Bhava doesn't mean we should be treated as doormats in trade relations. Strong move by India 👏
A
Ananya R.
Instead of just retaliatory tariffs, we should focus on making our steel industry more competitive globally. The quality of Indian steel needs improvement to compete with South Korea and Japan. That's the long-term solution!
V
Vikram P.
This is a bold move but calculated. The timing is right as India's economic position is stronger now than in 2018. The US needs Indian markets as much as we need theirs. Tit-for-tat is the only language they understand sometimes.
N
Neha S.
I worry about how this will affect common consumers. If tariffs are imposed on US products, prices of electronics and other goods might rise. The government should ensure middle-class families don't bear the brunt of this trade dispute.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50