Amidst India-US trade deal talks, the United States of America on Friday informed the World Trade Organization (WTO) that India's suggestion to suspend concessions in retaliation to American duties on steel and aluminium lacks foundation.
Washington's response to the WTO said, "The US will not discuss Section 232 tariffs under the Agreement on Safeguards as we do not view the tariffs as a safeguard measure."
Section 232 grants the US President authority to regulate imports that could potentially compromise US national security. The US emphasised, "These actions are, therefore, not safeguard measures".
India & US in WTO
India had last week suggested implementing retaliatory tariffs on 29 US products, including apples, almonds, pears, anti-freezing preparations, boric acid and specific iron and steel items under the WTO framework to counter American duties on steel and aluminium, which were imposed as safeguard measures.
India notified the WTO that these actions would impact $7.6 billion worth of imports into the United States, according to an ET report.
Also Read |
Donald Trump's fresh blow for Apple’s ‘Make in India’ plans; announces 25% tariff on iPhones made outside USThe development comes at a time when India and the US are in discussions to finalise a trade deal. Reports suggest that India is looking to seal the first phase of the India-US trade deal by early July before Donald Trump’s reciprocal tariffs kick in. Donald Trump has also expressed displeasure at Apple's plans to make iPhones in India, stating that the smartphones made outside the US for American market will be subject to 25% tariff. However experts suggest that Trump's statements on Apple's India plans may be a negotiating tactic amidst the trade deal talks.
Last week Commerce Minister Piyush Goyal visited the US for discussions on the trade deal and reports suggest that for the final round of talks US officials are expected to be in India soon.
On March 8, 2018, the United States enacted protective measures on specific steel and aluminium products, implementing 25% and 10% ad valorem duties respectively, effective from March 23, 2018. On February 10, 2025, it modified the protective measures for steel and aluminium imports, taking effect from March 12.
India stressed that the United States did not inform the WTO Committee on Safeguards about its decision to implement protective measures. As a significantly affected exporting member, India sought consultations with the US administration.
Also Read |
Explained: Why India is well positioned to deal with negative effects of Trump’s tariffs & top reasons it will be at an advantageThe United States responded on Friday, stating that India failed to meet its obligations under the Agreement on Safeguards by not acknowledging Washington's proposal for discussions regarding these tariffs in its response dated April 16, 2025.
According to WTO regulations, concessions may be suspended after holding consultations under the agreement with the nation implementing the protective measure. India had previously sought consultations regarding these tariffs on April 11, 2025.
Stay informed with the latest business news, updates on bank holidays and public holidays.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The TOI Business Desk is a vigilant and dedicated team of journal...
Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
Read Less