New Delhi– India has formally notified the World Trade Organization (WTO) of its intention to impose retaliatory tariffs on certain U.S. goods in response to American duties on Indian steel and aluminum exports, which New Delhi contends qualify as safeguard measures.
According to a WTO communication circulated at India’s request on May 9, the U.S. tariffs—announced under a Presidential Proclamation dated February 10 and scheduled to take effect March 12—would impact approximately $7.6 billion worth of Indian exports, resulting in an estimated $1.91 billion in additional duties.
India had previously sought consultations with the U.S. in April under the WTO’s Agreement on Safeguards after Washington announced the tariff decision. However, the U.S. has argued that the duties were imposed on national security grounds, not as safeguard measures, and therefore do not fall within the scope of the WTO’s safeguard provisions.
In its WTO filing, India stated that it plans to suspend trade concessions and other obligations in response to what it regards as unjustified U.S. safeguard actions targeting steel, aluminum, and related products. India maintains that these U.S. measures are inconsistent with the General Agreement on Tariffs and Trade (GATT) 1994 and the Agreement on Safeguards.
“India reserves the right to suspend concessions or other obligations that are substantially equivalent to the adverse effects of the U.S. measures on India’s trade,” the notification said. It also noted that while consultations under the Safeguards Agreement have not taken place, India may proceed with retaliatory action 30 days after the notification date if necessary.
Although the retaliatory tariffs are currently in the WTO notification phase, India is simultaneously nearing the conclusion of a new bilateral trade agreement with the Trump administration, which could influence the direction of the dispute. (Source: IANS)
