India to Suspend Trade Concessions on U.S. Goods: WTO Notification Explained

What Happened?

India has officially informed the WTO that it plans to suspend trade concessions and other commitments it made under the WTO rules. This action is a response to safeguard measures (extra import duties) recently imposed by the United States on Indian exports like aluminum and steel products.

Why Is India Doing This?

The U.S. has imposed higher tariffs on certain products from several countries, including India. These actions were not reported to the WTO and are seen as unfair trade restrictions. India argues that the U.S. measures violate global trade rules and harm Indian exporters.

In response, India plans to increase tariffs on selected American goods. This is allowed under Article 8.2 of the WTO Agreement on Safeguards, which lets a country take such action if its exports are unfairly affected.What Products Are Involved?

The U.S. imposed tariffs on:

Aluminum

Steel

Derivative products of aluminum and steel

India plans to target U.S. goods in a similar way, but has not listed specific items yet. It will impose higher tariffs on selected U.S. products.

When Will This Take Effect?

India has said the new tariffs may begin 30 days after the official notification date — so likely by early June 2025.

How Big Is the Impact?

U.S. safeguard measures affect Indian exports worth $7.6 billion

India’s countermeasures are expected to raise $1.91 billion in duties on U.S. imports

This move comes in response to US safeguard-style duties on Indian aluminium and steel products, which impact $7.60 billion worth of Indian exports and result in an estimated $1.91 billion in additional duties. While India argues that the US measures violate WTO rules and are unjustified under the Agreement on Safeguards, the United States defends its actions as national security measures, not subject to WTO safeguard provisions.

India’s Rights and Next Steps

India says it can adjust or change the list of affected products and the tariff rates as needed.

It may also make further notifications or changes to ensure that its trade interests are protected.

India will keep the WTO updated on its next steps.

Conclusion:

India is pushing back against U.S. trade restrictions by using its rights under WTO rules. This move could impact U.S. exporters and may lead to further discussions between the two countries on trade relations.