India has taken a firm stance against the United States in the World Trade Organization (WTO). The reason? The US has placed high taxes—called tariffs—on steel and aluminium products coming from many countries, including India. India has now said it will respond by imposing its own tariffs on American goods.
This move is not sudden. India had requested that the US discuss the matter under WTO terms back in April. But those talks did not happen. So now, India has officially sent a notice to the WTO, saying it plans to raise taxes on goods that come from the US. This is called a “retaliatory duty,” which means India is responding to the US’s earlier action.
The WTO report states that the US tariffs impact approximately $7.6 billion worth of Indian goods that are shipped to the US. The US collects around $1.91 billion in taxes on these items. India is now asking to collect the same amount—$1.91 billion—from American goods sold in India. This would help balance things out.
India’s letter to the WTO said it will take these steps because the US tariffs are hurting Indian trade. It also made clear that this action is allowed under WTO rules. If a country feels unfairly treated and talks fail, it has the right to respond in this way.
Why Did the US Impose These Tariffs?
The United States chose to impose 10% tariffs on aluminum and 25% levies on steel back in March 2018. These taxes were called “safeguard measures.” The US said they were needed for “national security.” That means the US believed these taxes would help protect American factories and workers.
Later in January 2020, the US decided to extend these taxes. Then again, on February 10, 2025, the US updated the rules. This time, the tariffs stayed at 25%, but they were extended for an unlimited time, starting March 12, 2025.
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India disagrees with the US using “national security” as a reason. India says these are just regular safeguard measures. According to India, they should have been reported to the WTO as such. But the US never officially did that. India believes this breaks global trade rules under GATT 1994 (a key WTO agreement) and the Agreement on Safeguards.
India also noted that, even though it asked for talks under WTO rules, the US did not agree to sit down and discuss the issue. This is another reason why India now feels justified in taking action.
What Happens Next at the WTO?
On May 9, 2025, India sent a notice to the WTO’s Council for Trade in Goods. In the notice, India said it will raise taxes on selected US products. This will start 30 days after the notification unless the issue is resolved sooner.
The new tariffs will only apply to goods made in the US. India may also change the list of products or the tax rates depending on what happens. This means India is keeping its options open.
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India has already responded to US tariffs with this action. In June 2019, 28 US products, including almonds and walnuts, were subject to higher levies imposed by India. That was a response to the 2018 US tariffs. That was a reaction to the US tariffs in 2018. That year, India even lodged a formal protest with the World Trade Organization.
This time, India says it will notify both the Council for Trade in Goods and the Committee on Safeguards about its next steps. It has also kept the option to update or change its position as needed.
While both countries are also talking about a new bilateral trade agreement, this tariff issue adds tension. A team from India is even visiting the US this week to discuss trade matters. But as of now, India is standing firm and using the WTO platform to protect its trade interests.
