Latest news with #GeneralAgreementonTariffsandTrade1994
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3 days ago
- Business
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US rejects India's challenge to aluminium, steel tariffs at WTO
The United States has rejected India's notice to the World Trade Organization proposing retaliatory tariffs after Washington increased the import duties on aluminium and steel to 25%, The Indian Express reported on Tuesday. The US argued that it had imposed the tariffs on the grounds of national security and claimed there were procedural errors in India's case. In a note sent to the World Trade Organization on May 23, the US stated that India had wrongly treated the tariffs on aluminium and steel as safeguard measures, the newspaper reported. Washington said that it had imposed the levies under section 232 of the US law, which allows such measures if imports are considered a threat to national security. In response to the challenge made by India, the US told the World Trade Organization that it 'will not discuss the section 232 tariffs under the Agreement on Safeguards as we do not view the tariffs as a safeguard measure', reported The Indian Express. The US also claimed that India had committed procedural errors by not acknowledging Washington's offer to discuss the tariffs in a communication dated April 16. 'Accordingly, India has not complied with the obligations under the Agreement on Safeguards, the agreement that it mistakenly contends applies to the tariffs in question,' the newspaper quoted the US as having said. On May 9, India notified the World Trade Organization that it may impose retaliatory tariffs on the US after Washington increased the import duties on aluminium and steel to 25%. The Donald Trump administration had first imposed higher tariffs on aluminium and steel imports in 2018. This was modified in February to impose duties of 25% on imports of the two metals. The measures took effect in March. Washington also removed country-specific and product-specific exemptions that several countries had managed to negotiate. On Friday, US President Donald Trump announced that his administration will double the tariffs on steel to 50%. While Washington has claimed that the increased tariffs had been taken in the interest of national security and were not safeguard measures, New Delhi argued that the actions were safeguard measures. 'The measures have not been notified by the United States to the WTO, but are, in essence, safeguard measures,' The Hindu had quoted India as having communicated to the international organisation in May. 'India maintains that the measures taken by the United States are not consistent with the General Agreement on Tariffs and Trade 1994 and the Agreement on Safeguards.' India argued that it had the right to impose retaliatory tariffs as the US had not held consultations, as are mandatory under the Agreement on Safeguards. India's levies were to take effect a month from the date it notified the World Trade Organization. New Delhi said that the measures it was proposing would be in the form of suspending concessions on select products from the US. This effectively meant an increase in tariffs on the products. The Indian reciprocal tariffs could be imposed on imports worth $7.6 billion from the United States, which would lead to a duty collection of $1.9 billion, The Hindu had quoted the communication as saying.
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14-05-2025
- Business
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India tells WTO it may impose retaliatory tariffs on US, cites increased aluminium, steel levies
India has notified the World Trade Organization that it may impose retaliatory tariffs on the United States after Washington increased the import duties on aluminium and steel to 25%, The Hindu reported on Tuesday. India's levies may take effect a month from the date it notified the World Trade Organization, which was May 9. This came amid India and the US negotiating a bilateral trade deal. The Donald Trump administration had first imposed higher tariffs on aluminium and steel imports in 2018. This was modified in February to impose duties of 25% on imports of the two metals. The measures took effect in March. Washington also removed country-specific and product-specific exemptions that several countries had managed to negotiate. Washington claimed that the increased tariffs had been taken in the interest of national security and were not safeguard measures. New Delhi has said that the actions were safeguard measures. 'The measures have not been notified by the United States to the WTO, but are, in essence, safeguard measures,' The Hindu quoted India as having communicated to the international organisation. 'India maintains that the measures taken by the United States are not consistent with the General Agreement on Tariffs and Trade 1994 and the Agreement on Safeguards.' India argued that it had the right to impose retaliatory tariffs as the US had not held consultations, as are mandatory under the Agreement on Safeguards. New Delhi said that the measures it was proposing would be in the form of suspending concessions on select products from the US. This effectively meant an increase in tariffs on the products, The Hindu reported. The Indian reciprocal tariffs could be imposed on imports worth $7.6 billion from the United States, which would lead to a duty collection of $1.9 billion, the newspaper quoted the communication as saying. Trump's broader reciprocal tariffs imposed on several countries, including a 26% 'discounted' levy on India, took effect on April 9. Hours later, however, Trump reduced the rates on imports from most countries to 10% for 90 days to provide time for trade negotiations. The US president had repeatedly said he intended to impose a reciprocal tax on India, among others, citing high tariffs the countries impose on foreign goods. September and November.
The Hindu
13-05-2025
- Business
- The Hindu
India warns WTO it may impose retaliatory tariffs on U.S. over steel, aluminium duty hikes
At a time when India and the U.S. are in talks over a trade deal, fresh tensions have emerged as India has notified the World Trade Organisation of its proposal to impose tariffs on $7.6 billion worth of imports from the U.S. in retaliation for that country raising its import duties on steel and aluminium to 25%. According to a communication from the WTO, India's reciprocal measures could kick in 30 days from the date it sent its notification to the WTO — May 9. The WTO said it was circulating the communication 'at the request of the delegation of India'. The matter first became a point of friction during U.S. President Donald Trump's first term, when in 2018 he had first imposed higher tariffs on steel and aluminium imports. Then, in February 2025 with effect from March, at the start of his second term, he modified this by imposing tariffs of 25% on imports of steel and aluminium and removing all country-specific and product-specific exemptions that most countries had managed to obtain. While the U.S. had declined overtures from India in April for talks over the matter, saying these higher tariffs were not safeguard measures but were taken in the interest of national security, India has maintained that they are safeguard measures. 'The measures have not been notified by the United States to the WTO, but are, in essence, safeguard measures,' India asserted in its communication to the WTO. 'India maintains that the measures taken by the United States are not consistent with the General Agreement on Tariffs and Trade 1994 (GATT 1994) and Agreement on Safeguards (AoS).' Further, it said that since the U.S. did not hold mandatory consultations under Article 12.3 of the AoS, India had the right to retaliate. It added that 'India reserves the right to suspend concessions or other obligations… that are substantially equivalent to the adverse effects of the measure to India's trade'. India further said that its proposed measures would be in the form of a suspension of concessions or other obligations on selected products originating in the U.S., which would in effect result in an increase in tariffs on these items. '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),' it added. The communication further said that the U.S.' measures would affect $7.6 billion worth of imports into the United States from India, on 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,' it added. India said it would inform both the Council for Trade in Goods and Committee on Safeguards of the WTO on 'the next appropriate steps'. If India does go ahead with its retaliatory measures, it would not be the first time. In June 2019, India imposed higher tariffs on 28 products from the U.S. after the U.S. removed India from its Generalised System of Preferences (GSP) and refused to discontinue its 2018 steel and aluminium tariffs. The duties — covering $240 million in trade value — were withdrawn in September 2023, after Prime Minister Narendra Modi's state visit to Washington.
