India has officially informed the World Trade Organisation (WTO) of its intent to impose tariffs on $7.6 billion worth of imports from the United States, escalating trade tensions between the two nations even as they engage in ongoing trade negotiations.
The move, detailed in a WTO communication circulated on May 9 at India’s request, is a response to the U.S. decision to raise import duties on steel and aluminium to 25%. India’s countermeasures could take effect 30 days from the date of notification.
The trade disagreement dates back to former U.S. President Donald Trump’s first term in 2018, when the U.S. initially raised tariffs on these metals. The dispute resurfaced in February 2025 at the onset of Trump’s second term, when the U.S. broadened the scope of the tariffs by eliminating exemptions previously granted to various countries and products.
Efforts by India to initiate dialogue in April were rebuffed by Washington, which justified the tariffs as measures necessary for national security. India, however, has classified them as safeguard measures — a categorization that, under WTO rules, would trigger mandatory consultations and permit reciprocal action.
“The measures have not been notified by the United States to the WTO, but are, in essence, safeguard measures,” India stated in its submission, arguing that the U.S. actions violate both the General Agreement on Tariffs and Trade (GATT 1994) and the Agreement on Safeguards.
India further contended that because the U.S. failed to conduct required consultations under Article 12.3 of the Safeguards Agreement, it is entitled to take proportionate retaliatory steps. The country intends to suspend concessions or other WTO obligations on selected U.S. products, effectively raising tariffs on them.
“India reserves its right to suspend concessions or other obligations after the expiration of thirty days from the date of this notification (May 9, 2025),” the communication stated.
According to India, the U.S. tariffs impact $7.6 billion worth of Indian exports, with an estimated $1.91 billion in additional duties collected as a result. India’s planned response aims to match that figure through new duties on U.S. goods.
India also indicated it would brief the WTO’s Council for Trade in Goods and Committee on Safeguards on its forthcoming actions. This is not the first instance of retaliation by India. In 2019, New Delhi raised tariffs on 28 U.S. products following its removal from the U.S. Generalised System of Preferences (GSP) and the continuation of the 2018 steel and aluminium tariffs. Those duties, which covered around $240 million in trade, were later lifted in September 2023 after Prime Minister Narendra Modi’s visit to Washington.