After the United States said a trade deal with India would take time, New Delhi formally notified the World Trade Organization (WTO) on May 12 of its plan to suspend trade concessions on American goods worth $1.91 billion.
The move is in response to Washington’s extension of safeguard tariffs on aluminium and steel imports, which India says breach global trade rules and harm its exports.
The signs of strain follow trade negotiations that had previously shown momentum. Both sides had signaled progress, but the U.S.’s recent comments have raised doubts about the pace and outcome of the talks.
India also rejected President Trump’s claim of mediating a ceasefire with Pakistan, a statement analysts say has deepened mistrust between the two governments.
In its WTO filing, India accused the United States of failing to comply with safeguard rules, bypassing required consultations, and inflicting economic injury on Indian exports.
“The proposed suspension of concessions or other obligations takes the form of an increase in tariffs on selected products originating in the United States,” the notice said.
Unless resolved, the retaliatory tariffs will take effect after 30 days. India has left open the option to revise the list of targeted U.S. products and tariff rates, indicating a measured but firm approach.
India estimates the U.S. measures impact $7.6 billion worth of its aluminium, steel, and derivative exports, causing losses amounting to $1.91 billion in additional duties.
This mirrors actions by the European Union and Canada, which responded to the Trump administration’s March tariffs on steel and aluminium by imposing retaliatory duties on U.S. goods.
India argues that the U.S. measures are inconsistent with the General Agreement on Tariffs and Trade (GATT) 1994 and the WTO Agreement on Safeguards, and says it will continue to exercise its right to suspend concessions until a settlement is reached.
