India Revises WTO Retaliatory Duty Proposal Amid Fresh US Tariff Hike on Steel and Aluminium

New Delhi, July 10, 2025 — India has revised its proposed retaliatory tariffs against the United States under World Trade Organization (WTO) rules, following the Trump administration’s decision to double import duties on aluminium and steel products.

The US had initially imposed a 25% tariff on imports of steel, aluminium, and derivative products on March 12. This was further increased to 50% on June 3, prompting India to recalibrate its earlier response filed with the WTO. The WTO circulated this updated communication among member countries at India’s request.

India’s Updated Notification to WTO

In a communication circulated to WTO members on Wednesday, India stated: “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 in response to the increase in the US tariff rate from 25% ad valorem to 50%.”

The WTO clarified that the suspension of concessions may take the form of increased tariffs on selected US goods. The notification also highlights that the proposed safeguard measures from the US affect Indian exports worth USD 7.6 billion, with projected duty collection amounting to USD 3.82 billion double the USD 1.91 billion cited in India’s earlier May 12 filing.

Background of the Tariff Dispute

The dispute dates back to 2018, during the first Trump administration, when the US invoked national security concerns to impose a 25% tariff on certain steel items and 10% on aluminium. In retaliation, India levied higher duties on 28 American goods in June 2019, including key agricultural exports like almonds and walnuts, and also filed a complaint at the WTO.

Trade Talks Context

The timing of India’s revised proposal is significant as it coincides with ongoing efforts to finalise a Bilateral Trade Agreement (BTA) between the two nations. A delegation from India is expected to travel to Washington next week for further discussions. India’s move signals a strong stance even as it engages in negotiations, balancing trade diplomacy with the need to protect its national economic interests.

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