US Rejects India’s WTO Notice On Steel Tariffs, Cites National Security Grounds

The United States has rejected New Delhi’s WTO notice dated 9 May, which proposed the suspension of concessions in response to steep import tariffs on steel and aluminium.

Washington asserted that the duties imposed were based on national security concerns and not safeguard measures, thereby declining any obligation to consult India under the WTO's Agreement on Safeguards, reported Hindustan Times.

"The United States will not discuss the Section 232 tariffs under the Agreement on Safeguards as we do not view the tariffs as a safeguard measure,” it said in a formal communication to the WTO.

"Accordingly, there is no basis for India’s proposal to suspend concessions or other obligations" under Article 8.2 of the Agreement on Safeguards."

The US had initially raised tariffs on 10 February and doubled them on 30 May to 50 per cent, citing national security, a move that escalated tensions.

In retaliation, India had notified the WTO of its intention to impose proportionate duties, effective 8 June, on key US imports such as almonds and walnuts.

Experts say the US tariffs could severely impact Indian exporters. “In FY25, India exported $4.56 billion worth of iron, steel, and aluminium products to the US,” said GTRI founder Ajay Srivastava.

“These exports are now exposed to sharply higher US tariffs, threatening the profitability of Indian producers and exporters.”

Talks are ongoing for a broader Bilateral Trade Agreement, with a US delegation expected in India soon.

Commerce ministry officials did not comment, but sources indicated India may press ahead with retaliatory tariffs unless preferential access is granted under the deal.

The episode echoes a similar dispute in 2018, which both nations eventually resolved through mutually agreed solutions.

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