India may impose retaliatory duty as US rejects its WTO notice on Trump tariffs: Report

The US has rejected India’s 9 May notice at the World Trade Organization (WTO), which proposed retaliatory action over high US import tariffs on steel and aluminium, Hindustan Times reported.

Washington stated that the tariffs were not safeguard measures, and therefore it would not engage in discussions with New Delhi on the issue, sources said on Sunday.

Given the situation, India may respond by suspending certain trade benefits for US goods—such as almonds and walnuts—and by increasing customs duties on American metal imports, sources told Hindustan Times.

India’s notice challenged the US decision of 10 February to impose a 25 per cent tariff on all steel and aluminium imports, effective from 12 March. The matter escalated further on 30 May, when the Trump administration doubled the tariffs to 50 per cent, effective 4 June, citing national security.

In response to the US raising import duties on steel and aluminium to protect its domestic metal industry, India formally informed the WTO on 9 May that it could withdraw trade benefits granted to the US after 30 days, beginning 8 June.

In reaction to India’s notice, the US informed the WTO on 22 May that India’s proposed retaliation was not in line with global trade rules. Washington argued that its tariffs on metals were not “safeguard” measures.

“Accordingly, there is no basis for India’s proposal to suspend concessions or other obligations under Article 8.2 of the Agreement on Safeguards with respect to these measures,” it said in its latest communication to the WTO.

Claiming the tariffs are not safeguard measures, the US declined to hold talks with India to resolve the issue, effectively putting the next move in New Delhi’s hands.

“The United States will not discuss the Section 232 tariffs under the Agreement on Safeguards as we do not view the tariffs as a safeguard measure,” the American communication to the multilateral body added.