Amid ongoing negotiations for a trade deal, the United States has told the World Trade Organization (WTO) that India has no legal justification for imposing retaliatory tariffs on American goods. This response comes after India raised concerns about US safeguard duties on steel, aluminum, and automobiles, which it claims will impact Indian exports worth $7.6 billion.

The US imposed tariffs of 25% on steel and 10% on aluminum in 2018, citing national security concerns under Section 232 of its domestic law. These duties were later amended in February 2025 and implemented from March 12, with a 25% duty on automobiles continuing.

India reacted by notifying the WTO that these measures could cost Indian exporters approximately $3.82 billion in lost revenue and would affect automotive product imports worth another $2.89 billion. In response, India suggested imposing retaliatory duties under WTO provisions.

However, the US has defended its actions by asserting that the tariffs fall under the national security exemption provided by WTO agreements and are therefore not subject to retaliation. According to the US, India’s move to suspend trade concessions lacks any legal basis under WTO law.

The disagreement forms part of a broader trade dispute between the two countries, even as both sides signal that a bilateral trade agreement could be finalized soon. President Donald Trump has recently indicated that the US is close to concluding a deal with India, potentially offering tariff reductions to below 20%. Yet, key issues—particularly in the agriculture and dairy sectors—remain unresolved.

While India and the US continue their discussions, the WTO case adds complexity to the situation. The final resolution could shape how WTO members use or challenge national security claims in global trade disputes going forward.