India Weighs Retaliatory Measures as US Dismisses WTO Notice on Metal Tariffs
India’s bid to challenge the United States’ steep import tariffs on steel and aluminium at the World Trade Organization (WTO) has hit a roadblock, with Washington rejecting India’s May 9 notice proposing retaliatory action. The US maintained that its tariffs, including a recent doubling to 50% effective June 4, are based on national security grounds and not safeguard measures, and thus refused to engage in dispute discussions with India.
The Trump administration’s decision to double tariffs on these metals on May 30 further intensified the trade tensions. In response, India is considering suspending trade concessions granted to the US—potentially impacting imports like almonds and walnuts—and imposing higher customs duties on American metal products.
India’s WTO notice targeted the US’s February 10 move to impose 25% tariffs on steel and aluminium from March 12, which has since been exacerbated by the doubled duties in June. The US communicated to the WTO on May 22 that India’s retaliation proposal does not align with WTO rules, insisting the tariffs are not safeguard measures, thus invalidating India’s claim under Article 8.2 of the Agreement on Safeguards.
This stance leaves the dispute unresolved and places pressure on India to decide its next steps. Sources indicate India may proceed with retaliatory tariffs unless the US offers preferential treatment for Indian metals under the ongoing Bilateral Trade Agreement (BTA) negotiations. A US team is expected in India soon to advance the talks for a potential early-harvest deal.
Experts highlight the significance of these tariffs for India’s exports. In the fiscal year 2025, India exported $4.56 billion worth of iron, steel, and aluminium products to the US, with key segments including iron and steel ($587.5 million), articles of iron or steel ($3.1 billion), and aluminium products ($860 million). The sharp tariff hikes threaten the competitiveness and profitability of Indian exporters.
India had earlier indicated its intent to retaliate proportionally, matching the estimated $1.91 billion in duties the US collects from Indian metal imports. However, the US counters that its tariffs stem from national security concerns, not safeguards, and the lack of a functioning WTO appellate body diminishes the impact of such disputes.
This ongoing tariff tussle echoes past conflicts, including the 2018 Biden administration’s 25% steel and 10% aluminium tariffs, which India countered with customs duties on 28 American products in 2019. Both nations later sought to resolve tensions through a WTO Mechanism for Amicable Settlement (MAS) in 2023, allowing market access exclusions and tariff removals.
As the trade standoff continues, the outcome will have broad implications for India-US trade relations and the global metals market.
