**Summary:**
In response to a query in the Lok Sabha on August 5, 2025, the Ministry of Commerce and Industry addressed concerns regarding United States tariffs on Indian steel and aluminum exports. The United States rejected India's request for consultations under the WTO Agreement on Safeguards (AoS) concerning these tariffs, arguing that the measures were implemented under Section 232 of U.S. domestic law based on national security grounds. The U.S. maintains that these actions fall under Article XXI of the General Agreement on Tariffs and Trade (GATT) 1994, which provides exceptions for national security, and therefore are not subject to the AoS. India contends that the U.S. tariffs are safeguard measures that should have been notified and subjected to consultations under the AoS. Consequently, India has reserved its right to suspend substantially equivalent concessions in response to the U.S.'s non-compliance with its obligations under the AoS.
Key Entities Referenced
World Trade Organization (WTO): An international organization dealing with the rules of trade between nations.
United States: Country that imposed tariffs on steel and aluminium, leading to a dispute with India at the WTO.
India: Country that challenged the US steel and aluminium tariffs at the WTO.
SHRI ASADUDDIN OWAISI: Member of LOK SABHA who raised a question about tariffs at the WTO.
Tariffs: Duties imposed by the United States on steel and aluminium imports, which are the subject of the dispute.
General Agreement on Tariffs and Trade (GATT 1994): An international agreement aimed at reducing tariffs and trade barriers, with Article XXI providing exceptions for national security.
Agreement on Safeguards (AoS): WTO agreement under which India requested consultations regarding US tariffs on steel and aluminium.
Section 232: Section of US domestic law under which the US introduced tariffs on grounds of national security.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
LOK SABHA
UNSTARRED QUESTION NO. 2717
ANSWERED ON 05/08/2025
TARIFFS AT THE WTO
2717. SHRI ASADUDDIN OWAISI:
Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be pleased
to state:
(a) whether the Government is aware that the United States has rejected India’s
challenge at the World Trade Organization (WTO) to the US steel and aluminium
tariffs on legal and procedural grounds, if so, the details thereof;
(b) the details of the procedural errors allegedly committed by India in its WTO
challenge as cited by the United States; and
(c) the steps being taken by the Government to address these concerns and to protect
India’s steel and aluminium exports from the impact of US tariffs?
ANSWER
वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI JITIN PRASADA)
(a) to (c) The United States did not accept India’s request for consultations under the WTO
Agreement on Safeguards (AoS) concerning US tariffs on steel, aluminium, and related
derivative products. The US has maintained that these measures were introduced under
Section 232 of their domestic law on grounds of national security. They have further stated
that the measures fall within the scope of Article XXI of the General Agreement on Tariffs
and Trade (GATT) 1994, which allows exceptions for national security, and have therefore
taken the position that these actions are not safeguard measures under the WTO
Agreement on Safeguards.
India, however, considers these measures to be safeguard actions that should have been
notified and subjected to consultations under the AoS. India has accordingly reserved its
right to suspend substantially equivalent concessions (right to impose equal trade
measures in response) due to the US’s non-compliance with its obligations under the AoS.
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