Tariffs on copper are not safeguard measures: US on India's claim in WTO

The US has rejected India's claim that the 50 per cent tariffs imposed by Washington on copper are safeguard measures under World Trade Organization (WTO) rules, stating there is no basis for New Delhi's proposal to suspend duty concessions on American goods.

The tariffs were imposed on August 1.

As India is an exporter of copper products to the US, it has sought consultations with the US on the matter under the WTO safeguard agreement in September.


India has stated that the duties, although claimed to be taken for security interests, are safeguard measures.

"These actions are not safeguard measures. Accordingly, there is no basis for India's proposal to suspend concessions or other obligations under...the Agreement on Safeguards with respect to these measures," according to a communication, dated November 6, from the US in response to India's notification.

A WTO member may take a safeguard action (restrict imports of a product temporarily) under the WTO Agreement on Safeguards to protect the domestic industry from an increase in imports of any product which is causing, or is threatening to cause, serious injury to the industry.

But before imposing a safeguard duty, a member country has to conduct a probe and notify other members regarding that.

The US has said that the tariffs on copper products are imposed as per Section 232, under which the US President determined that tariffs are necessary to adjust imports of these articles that threaten to impair the national security of the US.

Section 232 is a national security statute.

India has earlier announced reserving right to impose retaliatory duties on select US products in response to American tariffs on steel, aluminium, and auto components.

The development is important as the two countries are negotiating a bilateral trade agreement.

India exported copper products, including plates, tubes, and other semi-finished forms, worth USD 360 million to the US in FY25.

India is a net importer of copper, with imports totalling USD 14.45 billion in 2024-25, far outweighing its exports.

Its main suppliers include Chile, Indonesia, and Australia. Notably, India also imported USD 288 million of copper scrap from the US.

While the US has resorted to protectionist tariffs (50 per cent), India charges 2.5 per cent import tariff on copper ore and concentrates, 5 per cent on refined copper and copper alloys, and 10 per cent on certain copper articles, it had said.

The USA's decision is aimed at reducing dependence on foreign copper, which Washington claims poses a risk to critical domestic sectors such as defence, clean energy, and infrastructure.

Copper is a foundational raw material for electric vehicles (EVs), power grids, semiconductors, and defence electronics.