New Delhi: India on Monday proposed to impose retaliatory duties on certain American products under the World Trade Organisation (WTO) to counter the American tariffs on steel and aluminium in the name of safeguard measures. New Delhi told the WTO that these measures would affect $7.6 billion imports into the US.
“The safeguard measures would affect $7.6 billion imports into the US of the relevant products originating in India, on which the duty collection would be $1.91 billion,” it told the WTO.
As per the communication, the proposed suspension of concessions or other obligations takes the form of an increase in tariffs on selected products originating in the US.
On March 8, 2018, the US promulgated safeguard measures on certain steel and aluminium articles by imposing 25% and 10% ad valorem tariffs respectively on such products with effect from March 23, 2018. On February 10, 2025, it revised the safeguard measures on imports of steel and aluminium articles, effective from March 12.
India said that the US failed to notify the WTO Committee on Safeguards on taking a decision to apply safeguard measures and as an affected member with significant export interest, it has requested consultations with Washington.
In its response, the US said that the tariffs are “necessary to adjust imports of steel and aluminum articles that threaten to impair the national security of the US”.
The US had given a similar response to the EU’s request on consultations on these safeguard measures.
“It is a rebalancing of the concessions lost due to the safeguard measure imposed by the US. India is authorised under the Agreement on Safeguards (AoS) to take this measure,” said an official.
“India maintains that the measures taken by the US are not consistent with the GATT (General Agreement on Trade and Tariff) 1994 and AoS,” 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 to India's trade.
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, New Delhi said.
“India reserves the right to withdraw, modify, supplement or replace this notification, and/or make a further notification or notifications as and when required,” it added.
To ensure the effective exercise of its right to suspend substantially equivalent concessions, India also reserves its right to adjust the products as well as the tariff rates.
India’s move comes amid US imposing additional 10% reciprocal tariffs on India and other countries except China. Washington has put on hold higher tariffs of 26% for New Delhi till July 9.
India and the US are also negotiating a Bilateral Trade Agreement and aiming to double bilateral trade to $500 billion by 2030. The issue could be discussed during Indian trade negotiators’ visit to Washington next week for holding further talks on the BTA.
“The safeguard measures would affect $7.6 billion imports into the US of the relevant products originating in India, on which the duty collection would be $1.91 billion,” it told the WTO.
As per the communication, the proposed suspension of concessions or other obligations takes the form of an increase in tariffs on selected products originating in the US.
On March 8, 2018, the US promulgated safeguard measures on certain steel and aluminium articles by imposing 25% and 10% ad valorem tariffs respectively on such products with effect from March 23, 2018. On February 10, 2025, it revised the safeguard measures on imports of steel and aluminium articles, effective from March 12.
India said that the US failed to notify the WTO Committee on Safeguards on taking a decision to apply safeguard measures and as an affected member with significant export interest, it has requested consultations with Washington.
In its response, the US said that the tariffs are “necessary to adjust imports of steel and aluminum articles that threaten to impair the national security of the US”.
The US had given a similar response to the EU’s request on consultations on these safeguard measures.
“It is a rebalancing of the concessions lost due to the safeguard measure imposed by the US. India is authorised under the Agreement on Safeguards (AoS) to take this measure,” said an official.
“India maintains that the measures taken by the US are not consistent with the GATT (General Agreement on Trade and Tariff) 1994 and AoS,” 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 to India's trade.
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, New Delhi said.
“India reserves the right to withdraw, modify, supplement or replace this notification, and/or make a further notification or notifications as and when required,” it added.
To ensure the effective exercise of its right to suspend substantially equivalent concessions, India also reserves its right to adjust the products as well as the tariff rates.
India’s move comes amid US imposing additional 10% reciprocal tariffs on India and other countries except China. Washington has put on hold higher tariffs of 26% for New Delhi till July 9.
India and the US are also negotiating a Bilateral Trade Agreement and aiming to double bilateral trade to $500 billion by 2030. The issue could be discussed during Indian trade negotiators’ visit to Washington next week for holding further talks on the BTA.
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