(BS)
India has officially raised concerns with the United States over the re-imposition of duties on steel and aluminium exports, a move it views as a breach of the Mutually Agreed Solution (MAS) previously reached at the World Trade Organization (WTO). The matter is expected to feature prominently in upcoming trade talks in Washington next week, a senior government official confirmed on Friday.
The renewed duties—25 per cent on steel and 10 per cent on aluminium—were reintroduced by the Trump administration from March 12, under the pretext of national security. These mirror the original tariffs imposed in 2018 by the Biden administration, which led India to retaliate with customs duties on 28 American products including almonds and walnuts. That dispute had been resolved amicably in 2023 when both nations agreed to withdraw complaints and retaliatory tariffs under the WTO framework.
India, citing the current measures as a violation of the MAS, has sought consultations under the WTO’s Agreement on Safeguards. The US, however, has maintained that the tariffs are not safeguard measures but are imposed on national security grounds, placing them outside the purview of WTO trade remedies.
A senior official stated, “The issue is under discussion with the US.” An Indian delegation is slated to visit Washington for three days of high-level trade talks starting 23 April, where the matter will be taken up formally.
Under the original settlement, India had rescinded additional duties on eight US goods, while Washington agreed to ensure improved market access for Indian steel and aluminium exports. However, trade experts argue that the renewed US tariffs undermine that resolution.
“This is a clear breach of the spirit of the MAS,” said a Delhi-based trade analyst. “Such actions discourage peaceful dispute resolution under the WTO and could lead to further escalation.”
India’s steel and aluminium exports to the US amounted to approximately USD 450 million in 2024, and officials are now concerned about the potential impact on domestic producers and exporters.
Safeguard measures—such as duties or quotas—are intended to protect domestic industries against sudden import surges and must adhere to WTO rules. India’s stance is that the US tariffs, while labelled a national security measure, function as de facto safeguards without following due process.
As trade tensions rise, the outcome of next week’s deliberations will be crucial in determining whether the two countries can maintain the cooperative spirit they had achieved with the MAS or return to a more adversarial footing.
