logo
India warns WTO it may impose retaliatory tariffs on U.S. over steel, aluminium duty hikes

India warns WTO it may impose retaliatory tariffs on U.S. over steel, aluminium duty hikes

The Hindu13-05-2025
At a time when India and the U.S. are in talks over a trade deal, fresh tensions have emerged as India has notified the World Trade Organisation of its proposal to impose tariffs on $7.6 billion worth of imports from the U.S. in retaliation for that country raising its import duties on steel and aluminium to 25%.
According to a communication from the WTO, India's reciprocal measures could kick in 30 days from the date it sent its notification to the WTO — May 9. The WTO said it was circulating the communication 'at the request of the delegation of India'.
The matter first became a point of friction during U.S. President Donald Trump's first term, when in 2018 he had first imposed higher tariffs on steel and aluminium imports. Then, in February 2025 with effect from March, at the start of his second term, he modified this by imposing tariffs of 25% on imports of steel and aluminium and removing all country-specific and product-specific exemptions that most countries had managed to obtain.
While the U.S. had declined overtures from India in April for talks over the matter, saying these higher tariffs were not safeguard measures but were taken in the interest of national security, India has maintained that they are safeguard measures.
'The measures have not been notified by the United States to the WTO, but are, in essence, safeguard measures,' India asserted in its communication to the WTO. 'India maintains that the measures taken by the United States are not consistent with the General Agreement on Tariffs and Trade 1994 (GATT 1994) and Agreement on Safeguards (AoS).'
Further, it said that since the U.S. did not hold mandatory consultations under Article 12.3 of the AoS, India had the right to retaliate.
It added that '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'.
India further said that its proposed measures would be in the form of a suspension of concessions or other obligations on selected products originating in the U.S., which would in effect result in an increase in tariffs on these items.
'India reserves its right to suspend concessions or other obligations after the expiration of thirty days from the date of this notification (May 9, 2025),' it added.
The communication further said that the U.S.' measures would affect $7.6 billion worth of imports into the United States from India, on which the duty collection would be $1.91 billion.
'Accordingly, India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the United States,' it added.
India said it would inform both the Council for Trade in Goods and Committee on Safeguards of the WTO on 'the next appropriate steps'.
If India does go ahead with its retaliatory measures, it would not be the first time. In June 2019, India imposed higher tariffs on 28 products from the U.S. after the U.S. removed India from its Generalised System of Preferences (GSP) and refused to discontinue its 2018 steel and aluminium tariffs.
The duties — covering $240 million in trade value — were withdrawn in September 2023, after Prime Minister Narendra Modi's state visit to Washington.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump says US will work with Thailand and Cambodia, adds both ‘want to settle'
Trump says US will work with Thailand and Cambodia, adds both ‘want to settle'

Indian Express

time8 minutes ago

  • Indian Express

Trump says US will work with Thailand and Cambodia, adds both ‘want to settle'

US President Donald Trump said on Sunday he believed both Thailand and Cambodia wanted to settle their differences after he told the leaders of both countries that he would not conclude trade deals with them unless they ended their fighting. 'I spoke to both of the prime ministers, and I think by the time I got off, I think they want to settle now,' Trump told reporters at the start of a meeting with European Commission President Ursula von der Leyen in Turnbery, Scotland. Trump said he believed Thai and Cambodian officials were due to meet in coming days.

Trump says US-EU trade deal is close — But sticking points remain
Trump says US-EU trade deal is close — But sticking points remain

Mint

time11 minutes ago

  • Mint

Trump says US-EU trade deal is close — But sticking points remain

US President Donald Trump on Sunday expressed optimism over reaching a trade deal with the European Union, even as the clock ticks toward an August 1 deadline that could trigger sweeping tariffs on EU exports to the United States. Speaking at the start of a high-stakes meeting with European Commission President Ursula von der Leyen at his Turnberry golf resort on Scotland's western coast, Trump said there was a 'good chance' of striking an agreement, despite 'three or four main sticking points' — most notably around what he called 'fairness' in car and agricultural exports. US President Donald Trump on Sunday expressed confidence that the United States and the European Union could strike a trade deal, even as a looming August 1 deadline threatens to trigger sweeping tariffs on EU exports. Trump said at the start of a meeting with European Commission President Ursula von der Leyen at his Turnberry golf resort in Scotland that 'three or four main sticking points' remain, with the key issue being 'fairness,' particularly regarding barriers to US car and agricultural exports. Von der Leyen acknowledged that talks were balanced on a knife's edge, saying there was a '50-50' chance of securing an agreement before the deadline. 'President Trump is a tough negotiator and dealmaker,' she said ahead of the meeting. 'If we reach an agreement, it will be the biggest deal either of us has done.' She also emphasised that any deal would need to be based on fairness and a rebalancing of the current trade relationship between the two economies. The high-stakes meeting comes amid escalating pressure from Washington, which has threatened to impose a 30% across-the-board tariff on EU goods unless a deal is reached. Currently, EU exports already face tariffs of 25% on automobiles, 50% on steel and aluminum, and an additional 10% on other goods. The European Commission, representing all 27 EU member states, has been striving to avoid further economic strain and prevent retaliation, while preserving a transatlantic trade relationship worth approximately $1.9 trillion annually. Sunday's face-to-face meeting between Trump and von der Leyen was a last-ditch effort to avoid a transatlantic trade rupture. A breakthrough, if reached, could avert what both sides view as a damaging trade war and offer a path forward for stabilizing US-EU relations amid broader geopolitical tensions.

US, EU trade talks begin in Scotland as von der Leyen seeks deal with Trump
US, EU trade talks begin in Scotland as von der Leyen seeks deal with Trump

First Post

time11 minutes ago

  • First Post

US, EU trade talks begin in Scotland as von der Leyen seeks deal with Trump

US President Donald Trump and European Commission President Ursula von der Leyen convened in Scotland on Sunday in a bid to resolve a prolonged transatlantic trade row. read more US President Donald Trump and European Commission President Ursula von der Leyen met in Scotland on Sunday to push forward high-stakes trade negotiations with both sides under pressure to avert a transatlantic tariff clash before an August 1 deadline. The talks come after weeks of intense back-and-forth between Washington and Brussels as the EU seeks to strike a deal that would shield key sectors, particularly automobiles, pharmaceuticals and industrial goods from sweeping new US tariffs. STORY CONTINUES BELOW THIS AD Trump has threatened to impose fresh 30% tariffs on EU goods if an agreement is not reached by Friday, on top of existing levies including 25% on cars and parts and 50% on steel and aluminium. He has maintained that the EU has treated the US unfairly and warned that without a deal, punitive measures would go ahead. Despite the rising stakes, Trump said the chances of a deal were '50-50', while calling von der Leyen a 'highly respected woman' and expressing hope that the meeting would be productive. Speaking from his Turnberry resort on Friday, he said that there were '20 sticking points' in the negotiations but declined to elaborate. The EU, the United States' largest trading partner, exported €532 billion ($603 billion) worth of goods to the US in 2024, with pharmaceuticals, auto components, and chemicals among the biggest categories. The two sides exchanged a total of €1.6 trillion ($1.8 trillion) in goods and services last year, underscoring the magnitude of what's at stake. In preparation for Sunday's talks, EU negotiators consulted with Japanese officials, whose recent deal with Washington secured a baseline tariff of 15%. Trump has been aiming for similar trade shakeups globally, having already clinched agreements with the UK, Japan, Indonesia and Vietnam, though his administration has fallen short of delivering on its '90 deals in 90 days' pledge. STORY CONTINUES BELOW THIS AD With the clock ticking, both Trump and von der Leyen are hoping Sunday's discussions in Scotland will pave the way for an agreement that could reshape one of the world's most important trade relationships and stave off another economic confrontation.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store