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India Notifies WTO of Plan to Retaliate Against U.S. Metal Tariffs
Context
In a significant trade development, India has formally notified the World Trade Organization (WTO) of its decision to suspend trade concessions extended to the United States. This move comes as a counteraction to continued U.S. safeguard tariffs on Indian steel, aluminium, and related products.
What are these U.S. Tariffs?
- Since 2018, the U.S. has imposed tariffs on steel and aluminium imports citing national security concerns (Section 232 of U.S. Trade Law).
- These tariffs were renewed in February 2025 through a presidential proclamation, continuing to hurt India’s exports.
- Although the U.S. presents them as “national security” measures, India classifies them as safeguard measures in disguise, meant to protect the U.S. industry from competition rather than security threats.
Why is India retaliating?
- India estimates that these tariffs have impacted USD 7.6 billion worth of Indian exports, resulting in USD 1.91 billion in additional duties paid by Indian exporters.
- India now seeks to recover this economic loss by increasing tariffs on selected U.S. products as a WTO-sanctioned countermeasure.
- India’s trade tools under WTO
- Retaliatory Tariffs: Suspension of concessions under WTO Articles
- WTO Dispute Settlement: Legal complaint to challenge WTO violations
- Bilateral Consultations: Attempt to resolve dispute before formal action
- Truce Agreements: Temporary resolution to avoid escalation
Key Concepts and Doctrines
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