India has formally notified the World Trade Organisation (WTO) of its decision to impose retaliatory levies on some American products in the wake of the safeguard duties imposed by the United States on Indian steel and aluminium exports.
In a reply to the WTO, India pointed out that the U.S. measures it views as safeguard measures cover nearly $7.6 billion of Indian exports. The estimated tariff burden of the U.S. duties stands at nearly $1.91 billion.
In April, India had requested consultations with Washington under the WTO Agreement on Safeguards after the U.S. declared it would impose the tariffs. The United States, however, insisted that the tariffs were instituted for reasons of national security and must thus not be defined as a safeguard measure.
In its latest notification to the WTO, India declared its plan to suspend certain concessions and obligations in reaction to the U.S. action. These countermeasures relate to the U.S. Presidential Proclamation issued on February 10, 2025, which brought the steel, aluminium, and related product duties into effect on March 12. The WTO circulated India’s notification on May 9, 2025, at India’s request.
India argues that the U.S. tariffs are inconsistent with the General Agreement on Tariffs and Trade (GATT) 1994 and the Agreement on Safeguards (AoS). "India contends that the U.S. measures are not in line with GATT 1994 and the AoS," the notification adds. It also adds that since the necessary consultations under the AoS have not yet taken place, India maintains the right to suspend concessions or obligations proportionate to the trade harm inflicted by the U.S. actions.
India also made it clear that it maintains the right to apply such countermeasures within 30 days from the date of notification, without prejudice to its effective rights under the WTO regime.
While these retaliatory levies are still in the process of being notified, the news comes as India is said to be nearing a new bilateral trade deal with the Trump administration.
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