HOME > MARKETS > ECONOMY NEWS
  ECONOMY NEWS
ECONOMY
India revises proposed retaliatory duties against US over steel, aluminium tariffs in WTO
Jul-11-2025

In view of further tariffs hike on steel and aluminium by the Trump administration, India has revised its proposal to impose retaliatory duties under the WTO (World Trade Organisation) norms against the US. On March 12, the US first imposed 25 per cent tariffs on imports of aluminium, steel and derivative articles, followed by another 25 per cent tariffs hike on June 3. Meanwhile, World Trade Organisation’s (WTO) communication indicated that without prejudice to its earlier notification to the Council for Trade in Goods and the Committee on Safeguards dated May 12, India reserves its right to adjust the products and tariff rates. It added that this request is made in response to the increase in the tariff rate by the US from 25 per cent ad valorem to 50 per cent.

Further, it indicated that the proposed suspension of concessions or other obligations can take the form of an increase in tariffs on selected products originating in the US. It added the safeguard measures would affect $7.6 billion imports into the US of the relevant products originating in India, on which the duty collection would be $3.82 billion. Thus, India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in America. In the May 12 communication, the duty collection figure was stated as $1.91 billion.

In 2018, the first Trump administration imposed a 25 per cent duty on certain steel items and a 10 per cent duty on aluminium products on the grounds of national security. Meanwhile, in June 2019, India slapped customs duties on 28 US products, including almonds and walnuts, in retaliation. India had also filed a complaint in the WTO. The proposal assumes significance as both countries are negotiating a Bilateral Trade Agreement (BTA). Moreover, the Indian team is also expected to visit Washington next week to the US for trade talks.

  RELATED NEWS >>