India has proposed retaliatory duties against the United States at the World Trade Organization (WTO) over American tariffs on steel and aluminium. This action comes in response to the U.S. imposing tariffs on certain steel and aluminium items, citing national security concerns.
In 2018, the U.S. imposed a 25% duty on specific steel products and a 10% duty on aluminium products. In June 2019, India retaliated by levying customs duties on 28 U.S. products, including almonds and walnuts. India also filed a complaint with the WTO. By 2020, both countries decided to resolve their seven pending WTO disputes amicably, including the steel issue, leading India to withdraw the retaliatory tariffs. As part of the agreement, India rescinded additional duties on eight U.S. products, and the U.S. said it would strive to ensure effective market access opportunities for Indian exporters of steel and aluminium.
However, the Trump administration reimposed sweeping 25% tariffs on steel and aluminium from March 12 of this year on all countries, including India. India has opposed these measures and sought consultations under the WTO's Agreement on Safeguards. The U.S., however, maintains that these tariffs are based on national security grounds and are not safeguard measures. Safeguard measures, involving duties or quantitative restrictions, are trade remedies available to WTO member countries to protect domestic industries from a sudden surge in imports.
India has now notified the Council for Trade in Goods of its proposed suspension of concessions and other obligations. This involves increasing tariffs on selected products originating in the U.S.. According to a WTO communication, the U.S. safeguard measures affect $7.6 billion of imports into the U.S. of relevant products originating in India, resulting in $1.91 billion in duty collections. India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in America. India has proposed retaliatory duties on 29 American products, including apples and almonds.
Despite the ongoing dispute, the United States remains India's largest trading partner for the fourth consecutive year in the financial year 2024-25, with total bilateral trade reaching $131.84 billion. India's exports to the U.S. grew by 11.6% in 2024-25, reaching $86.51 billion, while imports from the U.S. increased by 7.44% to $45.33 billion. This resulted in a trade surplus of $41.18 billion for India. The two countries are currently negotiating a bilateral trade agreement, aiming to increase two-way trade in goods and services to $500 billion by 2030.
India has also initiated bilateral discussions with the U.S. on the steel and aluminium tariffs, which are expected to be raised during upcoming meetings. This is happening even as India's challenge at the WTO remains active. An Indian official team visited Washington for trade talks, starting April 23. These talks are aimed at ironing out differences before launching negotiations for a bilateral trade agreement.
