New Delhi: India on Tuesday sought consultations with the US under the World Trade Organisation’s (WTO) safeguard agreement over 50 per cent tariffs imposed on certain copper products by America.
This move comes after India reserved the right to impose retaliatory duties on select US products in response to American tariffs on steel and aluminium, and auto components.
On July 30 this year, the US adopted a measure in the form of a 50 percent tariff on all imports of certain copper products.
As a significant exporter to the US in the affected copper products, India has requested consultations with the US and is awaiting a prompt response to set a mutually convenient date and venue for discussions. In the fiscal year 2025, India exported copper products, including plates and tubes, worth USD 360 million to the US. However, India remains a net importer of copper, with imports reaching USD 14.45 billion in 2024-25, significantly exceeding its exports. Major suppliers to India include Chile, Indonesia, and Australia.
India also imported USD 288 million worth of copper scrap from the US, which may now be less viable due to the disrupted copper trade. A report from the think tank GTRI in July pointed out the stark contrast in tariff policies between the two nations. While the US has imposed a 50 per cent protectionist tariff, India maintains relatively low tariffs of 2.5 per cent on copper ore and concentrates, 5 per cent on refined copper and copper alloys, and 10 per cent on certain copper articles.
The US’s decision aims to reduce reliance on foreign copper, which it claims poses risks to critical domestic sectors, including defence, clean energy, and infrastructure. Copper is essential for electric vehicles (EVs), power grids, semiconductors, and defence electronics.
Previously, the US rejected India’s claims regarding tariffs on steel, aluminium, and auto components being classified as safeguard measures under WTO rules. Following this, India notified the Geneva-based trade body of its intention to impose retaliatory duties against these tariffs.
This development is significant as India and the US are currently negotiating a bilateral trade agreement (BTA) to enhance trade relations. The two countries have been engaged in discussions since March, completing five rounds of talks. However, the US team has postponed its visit to India for the next round of negotiations, originally scheduled for August 25, due to the newly imposed 50 per cent tariff effective from August 27. No new dates have been set for the sixth round of negotiations, although India remains optimistic about resuming discussions soon. An official noted that resolving the issue of the steep 50 per cent tariff on Indian goods will be crucial for finalizing the proposed deal.
The talks are currently stalled as the US seeks greater market access in politically sensitive areas such as agriculture and dairy, which India is reluctant to concede due to potential impacts on small and marginal farmers. Both nations aim to conclude the first phase of the BTA by fall (September-October) 2025, with a goal to more than double bilateral trade to USD 500 billion by 2030 from the current USD 191 billion.
In addition, a 25 per cent tariff on Indian goods entering the US took effect on August 7, with an additional 25 per cent penalty for India’s purchases of crude oil and military equipment from Russia implemented on August 27. During the period from April to July, India’s exports to the US increased by 21.64 per cent to USD 33.53 billion, while imports rose by 12.33 per cent to USD 17.41 billion, according to commerce ministry data. The US has emerged as India’s largest trading partner during this period, with bilateral trade amounting to USD 12.56 billion.
India has characterized the US’s imposition of a 25 per cent additional tariff on its goods as “unfair, unjustified, and unreasonable.” The US accounted for approximately 20 per cent of India’s total exports in 2024-25, while Indian exports represent about 2.5 per cent of the US’s total imports. Prime Minister Narendra Modi emphasized on August 15 that he would protect the interests of farmers and fishermen, asserting that India would never compromise on their welfare.
