India has informed the World Trade Organisation (WTO) that it will impose retaliatory tariffs on some American imports as a measure against US steel and aluminium tariffs. The step is being undertaken under WTO regulations governing safeguard measures.
India's proposed duties would be leveled against US imports worth $7.6 billion, while duty collections were projected to stand at $1.91 billion, based on a WTO communication. This action is to counter the negative impact of US tariffs on Indian goods.
India initiated the matter with the WTO in April to request consultations when the US levied the duties, which Washington invoked citing national security reasons—arguing that they did not constitute classic safeguard measures. India has, however, insisted that the tariffs are being used as safeguard measures and are in contravention of the General Agreement on Tariffs and Trade (GATT) 1994 and the WTO's Agreement on Safeguards (AoS).
The US initially imposed these levies on March 8, 2018—25% tariff on steel and 10% on aluminium—which took effect on March 23, 2018. These were extended in January 2020. A new revision arrived on February 10, 2025, with the new measures scheduled to take effect from March 12, 2025, and to remain effective indefinitely.
India's notification to the WTO, dated May 9, 2025, was placed by its delegation and read: "India hereby notifies the Council for Trade in Goods of its proposed suspension of concessions and other obligations." India claims that as consultations under the AoS haven't taken place, it retains the right to issue countermeasures equivalent to the economic harm caused.
The threatened retaliatory measures consist of increased tariffs on targeted US products. India made it clear that it can change or broaden the list of impacted products or tariff levels, as appropriate, to make its response proportionate. It also has the right to revise or cancel the notification in the future.
India is anticipated to inform both the WTO Council for Trade in Goods and the Committee on Safeguards of its subsequent steps.
This isn't the first time India has retaliated against U.S. tariffs. Following the Trump administration initially imposing the duties in 2018, India retaliated in June 2019 with the imposition of customs duties on 28 products from America, including almonds and walnuts, and also made a complaint at the WTO.
The new proposal comes at a delicate moment, as India and the US are negotiating a bilateral trade agreement. An Indian delegation is in Washington this week for further negotiations.
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