India has notified the World Trade Organization that it may impose retaliatory tariffs on the United States after Washington increased the import duties on aluminium and steel to 25%, The Hindu reported on Tuesday.

India’s levies may take effect a month from the date it notified the World Trade Organization, which was May 9.

This came amid India and the US negotiating a bilateral trade deal.

The Donald Trump administration had first imposed higher tariffs on aluminium and steel imports in 2018. This was modified in February to impose duties of 25% on imports of the two metals. The measures took effect in March. Washington also removed country-specific and product-specific exemptions that several countries had managed to negotiate.

Washington claimed that the increased tariffs had been taken in the interest of national security and were not safeguard measures.

New Delhi has said that the actions were safeguard measures.

“The measures have not been notified by the United States to the WTO, but are, in essence, safeguard measures,” The Hindu quoted India as having communicated to the international organisation. “India maintains that the measures taken by the United States are not consistent with the General Agreement on Tariffs and Trade 1994 and the Agreement on Safeguards.”

India argued that it had the right to impose retaliatory tariffs as the US had not held consultations, as are mandatory under the Agreement on Safeguards.

New Delhi said that the measures it was proposing would be in the form of suspending concessions on select products from the US. This effectively meant an increase in tariffs on the products, The Hindu reported.

The Indian reciprocal tariffs could be imposed on imports worth $7.6 billion from the United States, which would lead to a duty collection of $1.9 billion, the newspaper quoted the communication as saying.

Trump’s broader reciprocal tariffs imposed on several countries, including a 26% “discounted” levy on India, took effect on April 9. Hours later, however, Trump reduced the rates on imports from most countries to 10% for 90 days to provide time for trade negotiations.

The US president had repeatedly said he intended to impose a reciprocal tax on India, among others, citing high tariffs the countries impose on foreign goods.

The Indian government has said that it is in talks with Washington to finalise a bilateral trade agreement between September and November.

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