US justifies copper tariffs as a national security measure

The US rejected India’s contention that its 50% copper tariffs qualify as WTO safeguard measures, saying India has no grounds to suspend concessions on American goods. It clarified that the tariffs, effective August 1, were imposed under the national security measures.

United States has challenged India’s recent notification to the World Trade Organisation (WTO) reserving the right to impose reciprocal duties in response to Washington’s 50% tariff on copper products, arguing that India’s move has no basis under WTO rules. On October 30, India informed the WTO that it reserves the right to suspend concessions or obligations under the Agreement on Safeguards, equivalent to the adverse effects caused by the US measure.

According to India’s submission, the US safeguard duties would impact US$ 182.54 million worth of copper imports from India, resulting in an estimated US$ 87.82 million in additional tariffs. India, therefore, proposed to suspend equivalent concessions by imposing reciprocal duties on US-origin goods. New Delhi also reserved the right to adjust the products and tariff rates 30 days after the notification to ensure effective retaliation. The US imposed the 50% copper tariff on July 30, 2025, effective from August 1.

In its response, the US informed the WTO that the copper duties were imposed not under the Trade Act of 1974—which governs safeguard actions—but under national security legislation. Hence, it claimed that the measure does not fall within the scope of the WTO’s Agreement on Safeguards, making India’s retaliation proposal invalid.

India, however, has contested the US justification and, in September, formally requested consultations at the WTO—the first step in the dispute settlement process. These consultations aim to resolve disputes through dialogue within 60 days; if unsuccessful, India can request the formation of a dispute panel whose findings will be presented to the Dispute Settlement Body (DSB).

The copper tariff dispute adds to existing trade tensions between the two nations. India has previously challenged US tariffs on steel, aluminium, and automobile products at the WTO. After the US declined to hold consultations on those cases, New Delhi notified its intention to impose retaliatory tariffs on equivalent American exports in those sectors.

In FY25, India exported copper products such as plates, tubes, and other semi-finished forms worth US$ 360 million to the United States. Despite this, India remains a net importer of copper, with imports reaching US$ 14.45 billion in 2024–25, significantly surpassing its exports. Major copper suppliers to India include Chile, Indonesia, and Australia, while imports from the United States comprised US$ 288 million worth of copper scrap.