Daijiworld Media Network - New Delhi

New Delhi, Jun 2: The United States has rejected India’s May 9 notice to the World Trade Organization (WTO), which proposed retaliatory action against high US tariffs on steel and aluminium. Citing national security, the US said the levies are not “safeguard measures,” and therefore not subject to WTO dispute rules.

India had warned it would suspend concessions on US goods by June 8 unless the tariffs were rolled back. In retaliation, India may hike duties on American imports like almonds, walnuts, and metals.

Tensions escalated after the Trump administration doubled the tariffs to 50% on May 30. The US formally told the WTO it will not discuss the matter with India, as the tariffs fall under Section 232 of the Trade Expansion Act.

With no response from the commerce ministry, sources say India may proceed with retaliation unless a preferential deal is reached under the ongoing Bilateral Trade Agreement (BTA). A US delegation is expected in India this week for talks.

Experts warn of a direct hit to Indian exporters, with $4.56 billion in steel and aluminium exports to the US now exposed to higher duties. “The impact could be severe,” said GTRI founder Ajay Srivastava.

This isn’t the first tariff standoff. A similar dispute in 2018 ended with a mutually agreed solution in 2023. However, without a WTO appellate body, officials say such cases now carry little weight.