Amidst India-US trade deal talks, the United States of America on Friday informed the World Trade Organization (WTO) that India’s suggestion to suspend concessions in retaliation to American duties on steel and aluminium lacks foundation. Washington’s response to the WTO said, “The US will not discuss Section 232 tariffs under the Agreement on Safeguards as we do not view the tariffs as a safeguard measure.” Section 232 grants the US President authority to regulate imports that could potentially compromise US national security. The US emphasised, “These actions are, therefore, not safeguard measures”.
India & US in WTO
India had last week suggested implementing retaliatory tariffs on 29 US products, including apples, almonds, pears, anti-freezing preparations, boric acid and specific iron and steel items under the WTO framework to counter American duties on steel and aluminium, which were imposed as safeguard measures.India notified the WTO that these actions would impact $7.6 billion worth of imports into the United States, according to an ET report.
Also Read | Donald Trump’s fresh blow for Apple’s ‘Make in India’ plans; announces 25% tariff on iPhones made outside USThe development comes at a time when India and the US are in discussions to finalise a trade deal. Reports suggest that India is looking to seal the first phase of the India-US trade deal by early July before Donald Trump’s reciprocal tariffs kick in.On March 8, 2018, the United States enacted protective measures on specific steel and aluminium products, implementing 25% and 10% ad valorem duties respectively, effective from March 23, 2018. On February 10, 2025, it modified the protective measures for steel and aluminium imports, taking effect from March 12.India stressed that the United States did not inform the WTO Committee on Safeguards about its decision to implement protective measures. As a significantly affected exporting member, India sought consultations with the US administration.Also Read | Explained: Why India is well positioned to deal with negative effects of Trump’s tariffs & top reasons it will be at an advantageThe United States responded on Friday, stating that India failed to meet its obligations under the Agreement on Safeguards by not acknowledging Washington’s proposal for discussions regarding these tariffs in its response dated April 16, 2025. According to WTO regulations, concessions may be suspended after holding consultations under the agreement with the nation implementing the protective measure. India had previously sought consultations regarding these tariffs on April 11, 2025.
