India has made a formal approach to the World Trade Organization (WTO) requesting the imposition of retaliatory tariffs on United States imports, in retaliation against tariffs imposed by former US President Donald Trump on steel and aluminium items. As per a PTI report, the proposal may affect $7.6 billion worth of US imports with an estimated $1.91 billion of additional tariffs to be levied.
India Challenges US Tariffs at WTO
The WTO letter dated May 9, 2025, has reaffirmed the fact that the proposal was sent at India’s initiative and was being circulated now among the WTO members. India argues that the US tariffs violate provisions under the General Agreement on Tariffs and Trade (GATT) 1994 and the Agreement on Safeguards (AoS).
“India’s proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in America,” the WTO noted.
India’s move aims to suspend concessions or obligations under WTO rules to offset the adverse trade impact of the US tariffs. This retaliation would involve raising tariffs on selected US-origin products.
India also stated that it reserves the right to take further action and will notify the Council for Trade in Goods and the Committee on Safeguards of its next steps. Meanwhile, New Delhi is also pursuing bilateral discussions with Washington on the matter.
Background: Trump-Era Tariffs and India’s Response
The origin of the dispute dates back to March 2018, when the Trump administration imposed 25% tariffs on steel and 10% on aluminium under the guise of safeguard measures—actions the US claims were based on national security concerns.
India had initially responded by filing a complaint with the WTO and, in June 2019, imposed retaliatory duties on 28 American goods, including almonds, walnuts, and apples.
Despite consultations under the WTO framework, the US has maintained that its tariffs were not safeguard measures and therefore not subject to WTO dispute rules. The situation escalated further in February 2025, when the Trump-led administration increased tariffs to 25% across the board, extending them indefinitely.
Trade Talks Continue Amid Tariff Tensions
India’s latest WTO move comes at a sensitive time, as both nations are currently engaged in negotiations over a Bilateral Trade Agreement (BTA). A high-level Indian delegation is in the United States this week for ongoing trade discussions.
The outcome of these talks, along with how the WTO processes India’s retaliatory proposal, could have significant implications for US–India trade relations in the months ahead.
