India plans WTO retaliation over US metal tariffs

India has notified the WTO of its intent to impose retaliatory tariffs on select US goods, countering American safeguard duties on steel and aluminium. The measures affect US$ 7.6 billion worth of Indian exports, with potential duty losses of US$ 1.91 billion.

India has proposed imposing retaliatory duties on select American products under the World Trade Organisation (WTO) framework to counter US safeguard tariffs on steel and aluminium. In its notification to the WTO, New Delhi stated that “the safeguard measures would affect US$ 7.6 billion imports into the US of the relevant products originating in India, on which the duty collection would be US$ 1.91 billion.”

The proposed action involves a suspension of concessions or obligations in the form of increased tariffs on specific US-origin goods. These measures follow the US decision, effective from March 23, 2018, to impose 25% and 10% ad valorem tariffs on certain steel and aluminium products, which it revised on February 10, 2025, for implementation from March 12.

India highlighted that the US did not notify the WTO Committee on Safeguards when applying the measures and, as a significantly affected member, has requested consultations. In response, Washington argued the tariffs are “necessary to adjust imports of steel and aluminum articles that threaten to impair the national security of the US,” echoing its justification to the EU.

“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,” an official said. India maintains that the US measures violate the GATT 1994 and the AoS. Since consultations have not occurred, India reserves the right to suspend concessions substantially equivalent to the trade impact.

India will exercise this right 30 days post-notification and noted it could “withdraw, modify, supplement or replace this notification” as needed. The products and tariffs may also be adjusted accordingly.

This move comes as the US imposes a 10% reciprocal tariff on India and others (excluding China), while deferring a 26% duty hike on India until July 9. Both nations continue discussions on a Bilateral Trade Agreement, aiming to double trade to US$ 500 billion by 2030.