India is considering retaliatory tariff measures after the United States formally rejected its WTO notice opposing steep duties on steel and aluminium imports.
Washington claimed its tariff hikes were not “safeguard measures” and therefore not subject to WTO dispute resolution, officials familiar with the matter confirmed on Sunday.
India had issued a May 9 notification to the WTO stating its intent to suspend concessions and raise import duties on key US goods such as almonds and walnuts in response to the 25% duties Washington imposed in February, which took effect from March 12.
However, the situation escalated when the Trump administration doubled the tariffs to 50% on May 30, citing national security concerns, effective June 4.
US Rejects India’s WTO Move
In a May 22 reply, the US told the WTO that the tariffs were not “safeguard measures” and India’s retaliation was “not consistent” with global trade rules. “There is no basis for India’s proposal to suspend concessions under Article 8.2 of the Agreement on Safeguards,” Washington said.
The US has also refused to engage in dispute consultations, asserting the issue falls outside the Safeguards Agreement. “The United States will not discuss the Section 232 tariffs… as we do not view them as safeguard measures,” its official communication added.
India’s Trade Hit and Response Options
India’s Ministry of Commerce has not yet responded, but sources indicated New Delhi may go ahead with retaliatory tariffs if no progress is made in the ongoing Bilateral Trade Agreement (BTA) discussions. A US delegation is expected to visit India this week to advance an early harvest trade deal.
The stakes are high. According to Global Trade Research Initiative (GTRI), India exported $4.56 billion worth of iron, steel, and aluminium products to the US in FY25, including:
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$587.5 million in iron and steel
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$3.1 billion in articles of iron or steel
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$860 million in aluminium products
“These exports are now exposed to sharply higher US tariffs, threatening profitability,” said GTRI founder and former trade officer Ajay Srivastava.
India had earlier threatened retaliatory tariffs in 2018 over similar duties but withheld action amid trade negotiations. With tariff rates now doubled, retaliatory steps appear increasingly likely unless concessions are offered by the US.
