Daijiworld Media Network- New Delhi
New Delhi, May 13: In a bold trade move, India has formally informed the World Trade Organization (WTO) that it intends to impose retaliatory tariffs on imports from the United States. This comes as a countermeasure against the US government's continued imposition of safeguard duties on steel, aluminium, and related products, which India claims have led to an estimated export loss of USD 1.91 billion.
The notification was submitted to the WTO’s Council for Trade in Goods, where India invoked Article 8.2 of the Agreement on Safeguards (AoS), allowing member nations to suspend trade concessions in response to safeguard actions by another member.
The Indian government stated that the US safeguard duties — originally imposed in March 2018 via Presidential Proclamations No. 9704 and 9705 — have since been extended twice, most recently in February 2025 through Presidential Proclamations No. 10895 and 10896. These extended tariffs, effective from March 12, 2025, impose a 25% duty on steel and a 10% duty on aluminium imported into the United States.
India argues that these actions — although not formally notified by the US as “safeguard measures” under WTO rules — functionally operate as such, thereby violating the General Agreement on Tariffs and Trade (GATT) 1994 and the WTO’s Agreement on Safeguards.
According to India's submission, steel and aluminium exports from India to the US worth USD 7.6 billion have been directly impacted by these tariffs, resulting in a cumulative loss of USD 1.91 billion for Indian exporters.
India now seeks to suspend equivalent trade concessions, effectively proposing to impose counter-duties on American goods to the tune of the same value. If unresolved through consultations — which the US has not yet initiated — India’s retaliatory tariffs could take effect in early June.
The WTO’s safeguard provisions allow affected members to retaliate if they are unable to resolve disputes through negotiation. The current development highlights India’s growing willingness to assert its rights in global trade forums and protect domestic industry interests.
All eyes are now on Washington’s response. A resolution could still be possible if the United States agrees to consultations or revises its tariff policy. However, failure to do so may lead to a full-blown tariff standoff between the two democracies.