India Seeks WTO Consultations With US Over 50 percent Duty On Copper

India Seeks WTO Consultations With US Over 50 percent Duty On Copper

VoM News Desk | September 3, 2025 | 06:48 AM IST | Breaking News, India, United States of America | Follow on Google News

India Seeks WTO Consultations With US Over 50 percent Duty On Copper

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 50 per cent 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 US 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 US 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 USD 360 million to the US in FY25.

India is a net importer of copper, with imports totalling USD 14.45 billion in 2024-25, far outweighing its exports.

Its main suppliers include Chile, Indonesia, and Australia.

Notably, India also imported USD 288 million of copper scrap from the US, 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 US has resorted to protectionist tariffs (50 per cent), India charges 2.5 per cent import tariff on copper ore and concentrates, 5 per cent on refined copper and copper alloys, and 10 per cent 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 US 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 US are negotiating a bilateral trade agreement (BTA) to boost trade ties.

India and the US have been negotiating the pact since March. So far, five rounds of talks have been completed.

After a 50 per cent duty was imposed from August 27, the US 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 per cent tariff on Indian goods imposed by Washington will be key to striking the proposed deal.

The talks are paused as the US is pressing for greater market access in politically sensitive areas such as agri and dairy sectors, which India cannot accept as it affects the livelihood of small and marginal farmers.

The US 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 USD 500 billion by 2030, from the present USD 191 billion.

While the 25 per cent tariff on Indian goods entering the US has come into effect from August 7, an additional 25 per cent announced on India as 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 US increased 21.64 per cent to USD 33.53 billion, while imports rose 12.33 per cent to USD 17.41 billion, according to the commerce ministry data.

The US was the largest trading partner of India in the April-July 2025-26 period (USD 12.56 billion bilateral trade). India’s exports to America have been recording a positive growth since April this year.

India has described the US move to levy 25 per cent additional tariff on Indian goods as “unfair, unjustified and unreasonable”.

The US accounted for about 20 per cent of India’s total exports in 2024-25. Indian exports account for about 2.5 per cent 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.

(Except for the headline, this story has not been edited by VoM News staff and is published from the syndicated feed)

VoM News Desk

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