India Notifies WTO Of Retaliatory Tariffs Against US Over Steel And Aluminium Duties

India has formally informed the World Trade Organisation (WTO) of its intention to impose retaliatory tariffs on imports from the United States, following Washington’s decision to extend safeguard duties on steel, aluminium, and related products.

The move marks a significant escalation in trade tensions between the two countries.

In a notification to the WTO’s Council for Trade in Goods, India stated it would suspend concessions and other obligations under Article 8.2 of the Agreement on Safeguards (AoS), with the proposed action to be taken under Article 12.5.

If consultations are not initiated or a resolution not reached, the retaliatory tariffs could come into effect within 30 days.

India estimates it has suffered a loss of approximately USD 1.91 billion as a direct consequence of the US safeguard measures.

It stated, “The safeguard measures would affect USD 7.6 billion imports into the United States of the relevant products originating in India, on which the duty collection would be USD 1.91 billion. Accordingly, India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the United States.”

The United States first imposed the controversial tariffs—25 per cent on steel and 10 per cent on aluminium via Presidential Proclamations No. 9704 and 9705 on 8 March 2018.

These were extended in January 2020 and again on 10 February 2025, through Proclamations No. 10895 and 10896, effective from 12 March 2025.

Although Washington has not officially notified these actions as safeguard measures under WTO rules, India argues they function as such and are inconsistent with both the General Agreement on Tariffs and Trade (GATT) 1994 and the AoS.

India further noted that no consultations under Article 12.3 of the AoS have taken place. As a result, it seeks to impose equivalent duties on American products. India’s tariffs may come into force by early June.

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