(BS)
India has told the World Trade Organisation (WTO) that it proposes to levy duties on some products made in the US and shipped to India, to counter Washington’s tariffs on steel and aluminium products produced in India. The proposal assumes significance as both countries are negotiating a bilateral trade agreement (BTA). The Indian team is also visiting the US for trade talks this week.
The WTO communication indicates that these US safeguard measures could potentially impact over $7 billion worth of imports from India and the estimated duty collection may be close to $2 billion from these tariff levy. According to a PTI report, India’s proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in America.
India highlights US measures not consistent with GATT
India’s WTO communication, being circulated at the request of delegation of India added that the measures have not been notified by the US to the WTO, but are, in essence, safeguard measures. “India maintains that the measures taken by the US are not consistent with the GATT (General Agreement on Trade and Tariff) 1994 and AoS (Agreement on safeguards),” 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 on India’s trade.
The PTI report further added that the communication elaborated, “The proposed suspension of concessions or other obligations takes the form of an increase in tariffs on selected products originating in the United States.” 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 thirty days from the date of this notification, it said
What does the WTO safeguard agreement propose?
Earlier in April, India had sought consultations with the US under the WTO’s safeguard agreement, following American authorities’ decision to impose these tariffs. On the request for consultation, the US informed the global trade body that its decision to impose the tariffs was based on national security grounds and should not be considered as safeguard measures.
On March 8, 2018, the US promulgated safeguard measures on certain steel and aluminium articles by imposing 25% and 10% ad valorem tariffs, respectively. It came into effect on March 23, 2018. It was extended in January 2020. On February 10 earlier this year, the US again revised the safeguard measures on imports of steel and aluminium articles, effective from March 12, 2025, and with an unlimited duration. Now, it has imposed 25% tariffs.
India clarifies stance to WTO
“India hereby notifies the Council for Trade in Goods of its proposed suspension of concessions and other obligations…This notification is made in connection with safeguard measures extended by the United States of America on imports of aluminium, steel and derivative articles, vide Presidential Proclamation…dated February 10, 2025, with the effective date of March 12, 2025,” a WTO communication said. The communication, dated and received on May 9, 2025, is being circulated at the request of the delegation of India, it said.
India also clarified that it reserves the right to adjust the products as well as the tariff rates in the WTO communication. “India reserves the right to withdraw, modify, supplement, or replace this notification or make a further notification when required,” it added.
India Vs US: What’s the next step
Charting out the next course of action, India has made it clear that it will inform both the Council for Trade in Goods and the Committee on Safeguards. India has taken up the tariff issue bilaterally also.
The first Trump administration, in 2018, imposed a 25 per cent duty on certain steel items and a 10 per cent duty on aluminium products on the grounds of national security. In retaliation, India in June 2019 slapped customs duties on 28 US products, including almonds and walnuts. India had also filed a complaint in the WTO.
