India on Tuesday (September 2, 2025) sought consultations with the U.S. under the World Trade Organisation’s (WTO) safeguard agreement over 50% tariffs imposed on certain copper products by America.
This move comes after India reserved the right to impose retaliatory duties on select U.S. products in response to American tariffs on steel and aluminium; and auto components.
On July 30 this year, the U.S. adopted a measure in the form of 50% tariff on all imports of certain copper products.
The measure applies from August 1 this year and for an unlimited duration.
“India considers that the measure, although claimed to be taken for security interests, are, in essence, a safeguard measure,” a WTO communication said. The communication is being circulated at the request of the delegation of India.
It said that the U.S. failed to notify the WTO Committee on Safeguards on taking a decision to apply the safeguard measure. “Accordingly, as an affected member with significant export interest to the United States in the products concerned, India requests consultations with the United States,” it said.
“India looks forward to receiving a prompt reply to this request from the U.S. and to setting a mutually convenient date and venue for the…consultations,” the WTO added.
India exported copper products, including plates, tubes, and other semi-finished forms, worth $360 million to the U.S. in FY25. India is a net importer of copper, with imports totalling $14.45 billion in 2024-25, far outweighing its exports. Its main suppliers include Chile, Indonesia, and Australia. Notably, India also imported $288 million of copper scrap from the U.S., which may now become less viable due to disrupted bilateral copper flows.
Think tank GTRI in July had stated that the contrast between the two countries is striking.
While the U.S. has resorted to protectionist tariffs (50%), India charges 2.5% import tariff on copper ore and concentrates, 5% on refined copper and copper alloys, and 10% on certain copper articles, it had said.
The USA’s decision is aimed at reducing dependence on foreign copper, which Washington claims poses a risk to critical domestic sectors such as defence, clean energy, and infrastructure.
Copper is a foundational raw material for electric vehicles (EVs), power grids, semiconductors, and defence electronics.
Earlier on the issue of tariffs on steel and aluminium and auto components, the U.S. has rejected India’s claim that these duties are safeguard measures under the WTO rules.
After that, India has notified the Geneva-based multi-lateral 166-member trade body that it is reserving rights to impose retaliatory duties against these tariffs.
The development is important as India and the U.S. are negotiating a bilateral trade agreement (BTA) to boost trade ties. India and the U.S. have been negotiating the pact since March. So far, five rounds of talks have been completed.
After a 50% duty was imposed from August 27, the U.S. team has deferred its visit to India for the next round of talks, which was scheduled from August 25.
So far, no new dates have been finalised for the sixth round of negotiations. India is hopeful of resuming the negotiations soon. However, an official has said that resolving the issue relating to the steep 50% tariff on Indian goods imposed by Washington will be key to striking the proposed deal.
The talks are paused as the U.S. is pressing for greater market access in politically sensitive areas such as the agriculture and dairy sectors, which India cannot accept, as it affects the livelihood of small and marginal farmers.
The U.S. and India have announced plans to conclude the first phase of BTA by fall (September-October) of 2025. The two countries are aiming at more than doubling the bilateral trade to $500 billion by 2030, from the present $191 billion.
While the 25% tariff on Indian goods entering the U.S. has come into effect from August 7, an additional 25% announced on India as a penalty for buying crude oil and military equipment from Russia came into effect from August 27.
During April-July, the country’s exports to the U.S. increased 21.64% to $33.53 billion, while imports rose 12.33% to $17.41 billion, according to the commerce ministry data.
The U.S. was the largest trading partner of India in the April-July 2025-26 period ($12.56 billion bilateral trade). India’s exports to America have been recording a positive growth since April this year.
India has described the U.S. move to levy a 25% additional tariff on Indian goods as “unfair, unjustified and unreasonable”. The U.S. accounted for about 20% of India’s total exports in 2024-25. Indian exports account for about 2.5% of the USA’s total imports.
Prime Minister Narendra Modi on August 15 said he will stand like a wall to protect the interests of farmers and fishermen and India will never compromise on their interests.
Published – September 02, 2025 08:15 pm IST
