PTI New Delhi

The US has rejected India's claim that American tariffs on steel and aluminium are safeguard measures under the WTO (World Trade Organization) rules. According to a communication from the US in response to India's notification proposing to suspend concessions under the agreement on safeguards, these tariffs were imposed under Section 232 for national security reasons.

On May 9, India informed the WTO that it has reserved its right under WTO norms to impose retaliatory duties on certain American products over the US' steel and aluminium tariffs. "These actions are, therefore, not safeguard measures. Accordingly, there is no basis for India's proposal to suspend concessions or other obligations under (a provision) of the Agreement on Safeguards with respect to these measures," the US has said in its communication dated May 23.

The US has also claimed that India has not complied with the obligations under this agreement. "The United States will not discuss the Section 232 tariffs under the Agreement on Safeguards as we do not view the tariffs as a safeguard measure," it added.

The proposed suspension of concessions, which India has notified, could take the form of increased tariffs on selected US products. While India has not disclosed those items yet, in a similar move in 2019, it had imposed retaliatory tariffs on 28 US products, ranging from almonds and apples to chemicals.