India has no legal basis to hit back, US tells WTO
The US also claimed that these tariffs were required and fell under a national security statute as an essential security exception
Washington: India has ‘no legal basis to impose retaliatory tariffs’ against American duties on steel, aluminium and automobolies in the name of safeguarding, the United States told the World Trade Organisation (WTO) in an official communication on Thursday.
This comes soon after India, in an official notification to the WTO’s Safeguards Committee, stated that the safeguard measures on steel and aluminium would impact imports of $7.6 billion into the US from India on which the duty collection would be $3.82 billion. In the same manner, the measures can also affect imports of automobile products worth $2.89 billion, on which the duty collection would be $723.75 million.
Back in March 2018, the US had introduced certain safeguard measures on steel and aluminium products by imposing 25% and 10% ad valorem tariffs respectively. Now in February 2025, the safeguard measures on imports of steel and aluminium articles were revised. An ad valorem tariff essentially refers to the tax or duty imposed on goods on the basis of their monetary value, rather than their quantity or weight.
Similarly, the US also adopted a measure in the form of a 25% tariff increase ad valorem on imports of passenger vehicles, light trucks as well as some automobile parts originating from India. The measures on automobile parts have been in effect from May 3, 2025 till an undefined time period.
Further, the US claimed that these tariffs were required and fell under a national security statute as an essential security exception. As per an Economic Times report, they stated that there was "no legal basis" for India's proposal to suspend concessions or other obligations with respect to these measures.
These issues are being taken up at the WTO while the two sides are negotiating a bilateral trade agreement (BTA). Indian trade negotiators are currently in Washington to be a part of the fifth round of India-US BTA talks. Earlier this month also the Indian team was in Washington for talks, with negotiations taking place from June 26 to July 2.US President Donald Trump announced a raft of tariffs on a number of countries, including India, on April 2. However, it was soon postponed for 90 days until July 9 and later to August 1.
