India has proposed suspension of concessions, thereby increasing tariffs on imports of aluminium, steel and derivative articles originating in the US, a notice to the World Trade Organization (WTO) shows. 

“The proposed suspension of concessions or other obligations takes the form of an increase in tariffs on selected products originating in the United States,” India said in the notice. 

India said that “safeguard measures were imposed by the United States on imports of aluminium and steel articles”. “The measures have not been notified by the United States to the WTO, but are, in essence, safeguard measures. India maintains that the measures taken by the United States are not consistent with the GATT 1994 and AoS. As consultations provided for under Article 12.3, AoS have not taken place, India reserves the right to suspend concessions or other obligations under Article 8, AoS that are substantially equivalent to the adverse effects of the measure to India’s trade,” India said. 

The safeguard measures imposed by the US, India said, would affect $7.6 billion imports of Indian aluminium, steel and derivative articles, of which the duty collection would be $1.91 billion.

“Accordingly, India’s proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the United States. To ensure the effective exercise of its right to suspend substantially equivalent concessions or other obligations referred to in Article 8.2, India reserves its right to adjust the products as well as the tariff rates. India reserves the right to withdraw, modify, supplement or replace this notification, and/or make a further notification or notifications as and when required,” it said. 

President Donald Trump had imposed 25 per cent tariffs on all steel and aluminium imports into the United States in March, aimed at supporting US manufacturing. The European Union responded within hours with retaliatory tariffs on US exports. Canada also announced over $20 billion in countermeasures on US goods.