India WTO Import Tariffs: US Rejection
US Rejects India’s WTO Consultation Request Over Steel and Aluminum Tariffs, Trade Talks Continue
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New Delhi: The United States has declined India’s request for consultations within the World Trade Organization (WTO) framework regarding American tariffs imposed on steel, aluminum, and related products. this development,revealed in a parliamentary response on tuesday,underscores ongoing trade tensions between the two nations despite active negotiations for a Bilateral Trade Agreement (BTA).
US Cites National Security for Tariffs
minister of State for Commerce and industry, Jitin Prasada, informed the Lok Sabha that the US maintains its tariffs are justified under national security grounds. This justification has been a point of contention, as India argues the measures constitute safeguard actions requiring notification and consultation under the WTO’s Agreement on safeguards (AoS).
India believes the tariffs violate WTO regulations and has reserved the right to implement equivalent retaliatory trade measures – suspending concessions to the US - should the country remain non-compliant with its AoS obligations. This signifies a potential escalation in trade disputes if a resolution isn’t reached.
BTA Negotiations Progress, Focus on Protecting Domestic Interests
Despite the tariff disagreement, India and the US are actively engaged in discussions aimed at expanding trade and investment through a BTA.Negotiations were launched in March 2025, and five rounds have been completed, with the most recent taking place in Washington, D.C. from July 14-18, 2025.
A key element of these negotiations involves the strategic use of sensitive, negative, and exclusion lists. These lists allow India to protect its farmers and domestic industries by limiting or eliminating tariff concessions on specific goods. This approach is standard practice in international trade negotiations, enabling countries to safeguard crucial sectors.
Furthermore, India retains the right to employ trade remedial measures, such as anti-dumping duties and safeguards, in response to import surges that could harm domestic industries. These mechanisms provide an additional layer of protection for local businesses.
Trade with turkey and Azerbaijan: Imports Decline, No Restrictions Planned
In separate responses, the Minister clarified that India has not made any decisions to suspend or restrict trade or tourism with Turkey and Azerbaijan. Though, import figures from Turkey have shown a decline, decreasing from USD 3.78 billion in 2023-24 to USD 2.99 billion in 2024-25.
Key imports from Turkey during 2024-25 included:
Petroleum Crude
Gold
Inorganic Chemicals
Granite and Natural Stones
* aircraft & Spacecraft parts
Imports from Azerbaijan also experienced a decrease,with major items including Finished Leather,Medical and Scientific Instruments,Raw hides and Skins,Fruits/Vegetables Seeds,and Hand tools/Cutting Tools of Metals. The decline in imports appears to be market-driven and dose not reflect any policy changes from the Indian government.