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synopsis
India has told the WTO it plans to impose tariffs on select US goods in retaliation to American duties on Indian steel and aluminium. The move may affect ongoing trade talks between the two countries.
India has informed the World Trade Organisation (WTO) that it plans to impose higher import duties on certain goods from the United States. This is in response to the continued US tariffs on Indian steel and aluminium.
The announcement was made in a WTO notice dated May 9. India said that it would suspend trade concessions and raise tariffs on selected American products. The proposal comes under WTO rules that allow such action when a member country feels it has been unfairly affected by another member’s trade measures.
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According to India, the US tariffs have hurt nearly $7.6 billion worth of Indian exports. India estimates it could collect around $2 billion in extra duties through these proposed measures.
India says US tariffs break global trade rules
India described the US actions as ‘safeguard measures’ that should have been reported to the WTO, but weren’t. In its communication, India said the US has failed to follow the rules of the General Agreement on Tariffs and Trade (GATT) and the WTO’s Agreement on Safeguards.
India has also pointed out that the US did not hold the required consultations under WTO rules. As a result, India says it now has the right to act and will go ahead with the tariff increases 30 days after the WTO notification.
India also told the WTO that it reserves the right to change the list of affected products and the duty rates in the future.
A long-running trade dispute
This dispute goes back to 2018, when the Trump administration first imposed 25% tariffs on steel and 10% on aluminium imports, including from India. The US claimed the move was needed for “national security.”
India disagreed and called the move unfair. In 2019, it hit back by imposing tariffs on 28 US products like almonds and walnuts and filed a complaint at the WTO.
After Donald Trump returned to office in 2025, his administration extended the steel and aluminium tariffs again through a presidential order dated February 10, 2025. These duties are now set to continue without a set end date, effective March 12, 2025.
Earlier this year, in April, India requested consultations with the US under the WTO’s rules. However, the US said the tariffs were not “safeguards” but rather national security measures—and thus not subject to regular WTO procedures.
Trade talks continue despite tensions
Interestingly, this trade fight is happening at a time when India and the US are also trying to finalise a new bilateral trade agreement. Reports suggest India has offered to reduce the gap between its tariff levels and those of the US by almost two-thirds in an effort to move the talks forward.
An Indian trade team is currently in the US for discussions. But the latest WTO move could complicate those talks.
Steel sector impact
News of the proposed tariffs has impacted steel stocks in India. Companies like JSW Steel, Tata Steel, and SAIL saw their share prices fall on Tuesday. Experts say this is partly due to profit booking, as these stocks had rallied earlier this week.
India’s action at the WTO shows that it is ready to use global trade rules to push back against what it sees as unfair treatment. It remains to be seen how the US will respond and whether the two countries can still move forward with their trade deal.
