India has proposed to impose retaliatory duties under the WTO (World Trade Organisation) norms against the US over American tariffs on steel and aluminium in the name of safeguard measures. A WTO communication said the safeguard measures would affect $7.6 billion imports into the US of the relevant products originating in India, on which the duty collection would be $1.91 billion.
Accordingly, it said, India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in America. Earlier in April, India had sought consultations with the US under the WTO's safeguard agreement, following American authorities' decision to impose these tariffs. The US informed the global trade body that its decision to impose the tariffs was based on national security grounds and should not be considered as safeguard measures.
On March 8, 2018, the US promulgated safeguard measures on certain steel and aluminium articles by imposing 25 per cent and 10 per cent ad valorem tariffs, respectively. It came into effect on March 23, 2018. It was extended in January 2020. On February 10 this year, the US again revised the safeguard measures on imports of steel and aluminium articles, effective from March 12, 2025, and with an unlimited duration. Now, it has imposed 25 per cent tariffs.
It stated ‘India hereby notifies the Council for Trade in Goods of its proposed suspension of concessions and other obligations...This notification is made in connection with safeguard measures extended by the United States of America on imports of aluminium, steel and derivative articles, vide Presidential Proclamation...dated 10 February 2025, with the effective date of12 March 2025.’
It said the communication, dated and received on May 9, 2025, is being circulated at the request of the delegation of India. It added that the measures have not been notified by the US to the WTO, but are, in essence, safeguard measures. ‘India maintains that the measures taken by the US are not consistent with the GATT (General Agreement on Trade and Tariff) 1994 and AoS (Agreement on safeguards),’ it said, adding that as consultations provided for under a provision of the AoS have not taken place, India reserves the right to suspend concessions or other obligations that are substantially equivalent to the adverse effects of the measure to India's trade.
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