The US has rejected India’s discover on the World Commerce Group (WTO), which proposed retaliatory motion towards the 25 per cent US tariffs on metal and aluminium, arguing that the tariffs have been imposed on nationwide safety grounds. The US additionally identified procedural errors in India’s case.
In its notice dated Might 23, the US said that India is wrongly treating the tariffs on metal and aluminium as safeguard measures. It clarified that these duties have been imposed underneath US legislation (Part 232), which permits such motion if imports are thought of a risk to nationwide safety.
This growth is critical as US President Donald Trump on Friday introduced a transfer to double import tariffs on metal to 50 per cent — a step Indian exporters have referred to as “unlucky”, warning that they’ve already misplaced $5 billion in exports as a result of earlier tariffs, and additional hikes might deepen losses.
“The US won’t talk about the Part 232 tariffs underneath the Settlement on Safeguards as we don’t view the tariffs as a safeguard measure,” the US informed the WTO Council for Commerce in Items in response to India’s problem.
In FY2025, India exported $4.56 billion value of iron, metal, and aluminium merchandise to the US, together with $587.5 million in iron and metal, $3.1 billion in articles of iron or metal, and $860 million in aluminium and associated items. These exports now face sharply increased US tariffs, threatening the profitability of Indian producers and exporters.
The US additionally claimed that India had dedicated procedural errors. “India by no means acknowledged america’ supply to debate these tariffs in our response dated 16 April 2025. Accordingly, India has not complied with the obligations underneath the Settlement on Safeguards, the settlement that it mistakenly contends applies to the tariffs in query,” the US notice stated.
Ajay Srivastava, former commerce officer and head of the World Commerce Analysis Initiative (GTRI), stated India now has a number of choices. One is to launch a proper WTO dispute, not underneath the Safeguards Settlement, however underneath broader GATT guidelines, difficult the Part 232 tariffs as disguised protectionist measures.
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“India might argue that the US is abusing the nationwide safety exception, referring to earlier WTO rulings that restrict how Article XXI will be invoked. Nonetheless, this authorized path carries dangers, because the US has a observe document of disregarding WTO rulings on nationwide safety,” GTRI stated.
A extra forceful method can be for India to impose retaliatory tariffs by itself, even with out WTO authorisation, Srivastava stated. He famous that different nations such because the EU, Canada, and China have already completed this in response to the US Part 232 tariffs, as a political sign of resistance.
“Whereas this sends a transparent message, it additionally dangers US countermeasures and potential authorized battles. GTRI believes that though India has authorized and diplomatic choices, it might determine to not act instantly,” Srivastava stated. GTRI advised {that a} pragmatic path can be for India to make use of the continuing bilateral Free Commerce Settlement (FTA) negotiations with the US as the primary platform to resolve the difficulty.
