India has no basis to hit back against steel, auto tariffs: US

The US has told the World Trade Organization (WTO) that there was "no legal basis" for India to propose retaliatory tariffs against American duties on steel and aluminium as well as automobiles in the name of safeguard measures.

Its communication comes after India said that the safeguard measures on steel and aluminium would affect imports of $7.6 billion into the US from India on which the duty collection would be $3.82 billion. Similarly, the measures would affect imports of automobile products worth $2.89 billion, on which the duty collection would be $723.75 million.

On March 8, 2018, the US promulgated safeguard measures on certain steel and aluminium products by imposing 25% and 10% ad valorem tariffs respectively with effect from March 23 that year. On February 10, 2025, it revised the safeguard measures on imports of steel and aluminium articles, with effect from March 12.


Similarly, the US adopted a measure in the form of a tariff increase of 25% ad valorem on imports of passenger vehicles and light trucks, and certain automobile parts originating in or from India. The measure on automobile parts took effect from May 3 for an unlimited duration.

Claiming that its tariffs were necessary and fell under a national security statute as an essential security exception, the US said there was "no legal basis" for India's proposal to suspend concessions or other obligations with respect to these measures.

The issues are being taken up at the multilateral trade body even as the two sides are thrashing out a bilateral trade agreement (BTA). Indian trade negotiators are in Washington as part of the fifth round of India-US BTA talks.