India plans retaliatory tariffs on US steel and aluminium duties under WTO norms

India on Monday proposed to impose retaliatory tariffs on US products under World Trade Organisation (WTO) rules, in response to American safeguard measures on steel and aluminium imports. The move comes as both countries engage in bilateral trade negotiations.

According to a formal communication to the WTO, India said the US safeguard tariffs, extended earlier this year, affect Indian exports worth $7.6 billion, and would lead to a duty collection of approximately $1.91 billion. In response, India has proposed to suspend equivalent trade concessions by imposing similar duties on imports from the US.

"The proposed suspension of concessions or other obligations takes the form of an increase in tariffs on selected products originating in the United States," the WTO document noted. India has notified the WTO's Council for trade in goods of its intent and said it reserves the right to enforce these duties 30 days after the date of the notification, that is, May 9, 2025.

The US first imposed 25 per cent tariffs on steel and 10 per cent on aluminium imports in March 2018, invoking national security concerns under Section 232 of its trade laws. While the US maintains these duties are not safeguard measures, India argues otherwise, citing inconsistencies with the general agreement on tariffs and trade (GATT) 1994 and the agreement on safeguards (AoS).

India had earlier sought formal consultations with the US under the WTO's dispute settlement framework in April 2025.

India contends that since the US revised and extended these tariffs indefinitely in February 2025, the continued imposition of duties is harming Indian exporters and violates multilateral trade norms.

The timing of the proposal is crucial as it coincides with India-US bilateral trade negotiations. An Indian delegation is currently in the US for discussions on a potential bilateral trade agreement (BTA). The retaliatory step could cast a shadow over the talks, although both sides have continued dialogue even amid previous disputes.

This isn't the first instance of such tensions. India had previously retaliated in June 2019 with higher tariffs on 28 US products including almonds, apples, and walnuts, after the Trump administration imposed the initial steel and aluminium duties in 2018.

The WTO filing said that India reserves the right to adjust tariffs, change targeted products, or modify the notification depending on future developments. India also reaffirmed its intention to notify the WTO's committee on safeguards regarding its next steps.