India's Bold Response: Retaliatory Tariffs Against US Steel and Aluminium Imports

In a significant move, India has proposed retaliatory tariffs against the United States, citing violations of global trade rules regarding steel and aluminium duties. This decision, which affects approximately $7.6 billion in imports, follows a formal consultation request made by India under WTO regulations. The US maintains that its tariffs are justified on national security grounds. As tensions rise, India plans to suspend concessions towards the US, marking a pivotal moment in international trade relations. Discover the details of this unfolding trade dispute.

By Narendra Chaudhary May 13, 2025, 09:44 IST

India Takes Action Against US Tariffs

India has announced plans to impose retaliatory tariffs on the United States at the World Trade Organization (WTO), claiming that the US's duties on steel and aluminium contravene international trade regulations.

In a statement released on May 9, India highlighted that the US's protective measures impact around $7.6 billion in imports from India, potentially leading to duty collections of approximately $1.91 billion.

This action follows a formal request for consultations that India submitted in April under the WTO's Agreement on Safeguards, after the US revealed updated tariffs on specific steel and aluminium products.

India informed the WTO of its intention to suspend concessions and obligations towards the US in retaliation for the revised tariffs, which were enacted through a presidential proclamation on February 10 and are scheduled to take effect on March 12, 2025.

The US has defended its tariffs, asserting that they are grounded in national security concerns and should not be classified as safeguard measures under WTO guidelines.

The US first imposed these tariffs on March 8, 2018, introducing a 25% duty on certain steel products and a 10% duty on aluminium, which were later extended in January 2020. The most recent update saw the US extend these measures indefinitely while keeping the 25% tariff rate intact.

India argues that despite the US not officially notifying the WTO about these new measures, they effectively act as safeguard actions and thus fall under WTO scrutiny.