NEW DELHI: India has formally notified the World Trade Organization (WTO) of its intent to suspend trade concessions extended to the United States in response to continued US safeguard tariffs on steel, aluminium, and related products. The notice, filed on May 12, 2025, Article 12.5 of the WTO Agreement on Safeguards, which allows retaliation when a member imposes safeguard measures without adequate notification or consultation.
The proposed suspension of concessions or other obligations takes the form of an increase in tariffs on selected products originating in the United States.
India’s move targets US duties that have been in place since 2018, and most recently extended via presidential proclamations on February 10, 2025. Although imposed under the guise of national security, India argues these tariffs are de facto safeguard measures that violate WTO rules. It further contends the US failed to fulfill its obligations under Article 12.3, which mandates prior consultations.
India estimates the US tariffs have affected $7.6 billion in Indian exports, resulting in an additional $1.91 billion in duties. It now plans to impose retaliatory tariffs on selected U.S. imports to recover that amount. The countermeasures could come into effect as early as June 8, 2025, unless consultations are initiated or the US withdraws its tariffs.
This isn't India’s first WTO-sanctioned retaliation. In 2019, it raised tariffs on 28 US products following the removal of its GSP status and continued metal tariffs. Those duties were rolled back in 2023 as part of a bilateral truce.
The latest move adds pressure to ongoing India-US trade talks, including potential Free Trade Agreement discussions. It also reflects India’s more assertive stance in defending its economic interests through multilateral channels, especially in strategic sectors like steel and aluminium. All eyes are now on Washington’s next move.