India Threatens Retaliatory Steel Aluminium Tariffs Against US at WTO Amid Trade Talks

As India and the United States carry on negotiations on a much-awaited trade pact, India has officially introduced retaliatory tariffs under World Trade Organisation (WTO) norms against American import charges on steel and aluminium.

The proposal has been made at a critical time when both nations are planning to complete the first phase of their trade deal in September or October.

India had previously set out its plan to introduce countermeasures in the WTO in May. The action aims at US safeguard tariffs—initiated as protective levies—on Indian steel and aluminium exports. These tariffs, India claims, have hit Indian exports worth about $7.6 billion.

The US initially imposed the safeguard tariffs on 8 March 2018 with a 25% duty on steel and a 10% duty on aluminium, effective from 23 March 2018. Later, on 10 February 2025, the US adjusted these duties, and the new measures became effective from 12 March 2025.

As per India's formal response to the WTO, "The safeguard measures would cover $7.6 billion worth of imports into the United States of the concerned products originating in India, on which duty collection would be $3.82 billion."

India has then put forth a suggestion for suspension of some trade concessions that have earlier been extended to the US. They would be in terms of higher tariffs on some American goods.

"Following suit, India's threatened suspension of concessions would lead to an equivalent level of duty levied on goods from the US," the statement further read.

This is not India's first retaliatory reaction in recent weeks. The nation had also proposed retaliatory actions against US automobile imports, yet again emphasizing escalating trade tensions.

Wednesday’s notification to the WTO emphasized that the proposal is directly linked to the continued safeguard measures imposed by the US on steel, aluminium, and related products.

India’s action underscores a broader pushback against what it sees as unjustified protectionism, even as it continues to pursue stronger bilateral trade ties with Washington.