India Plans Retaliatory Tariffs on US Goods Over Steel Duties at WTO

As a retaliatory measure to persistent US tariffs on steel and aluminium, India has informed the World Trade Organisation (WTO) of its plan to impose retaliatory duties on American goods citing breaches of global trade norms.

India, in a statement that was released through a communication circulated by the WTO on May 9, reported that the US safeguard measures affect $7.6 billion worth of Indian exports, causing estimated duty collections of $1.91 billion. India hopes to retrieve an equivalent sum through retaliatory tariffs on some US products.

The step comes after Washington’s move to initially enforce the measure in 2018 and subsequently extend it several times imposing a 25% tariff on steel and a 10% tariff on aluminium imports. The most recent revision was through a US Presidential Proclamation dated February 10, 2025, making tariffs effective perpetually from March 12, 2025.

Although the US claims that tariffs are on grounds of national security rather than safeguarding, India feels the tariffs violate the General Agreement on Tariffs and Trade (GATT) 1994 and the WTO Agreement on Safeguards India previously requested consultation with the US in April under WTO practice, but negotiation has not taken place.

“India reserves the right to suspend concessions equivalent to the adverse trade effects,” the WTO message stated. It further stated that India could start levying these duties 30 days after the notice was issued. India has also left the door open to modify product lists and tariff rates as necessary.

This is not the first time India has struck back. In 2019, in response to similar US tariffs during the Trump administration, India levied duties on 28 US products, such as almonds and walnuts. India had also officially protested the US actions at the WTO.

This latest development follows amid an ongoing exchange of bilateral trade negotiations, with an Indian delegation traveling to Washington this week. While both nations strive for a larger trade deal, the tariff standoff risks complicating the negotiations.

India will inform the WTO’s Council for Trade in Goods and the Committee on Safeguards about its next move.