New Delhi– The United States has refused India’s request for consultations at the World Trade Organization over the 50 percent tariffs imposed by Washington on copper and copper derivative imports, asserting that the duties do not qualify as safeguard measures under global trade rules.
In a communication to the WTO, the U.S. said there is “no basis” for India to seek consultations under the WTO Agreement on Safeguards, arguing that the tariffs were imposed under national security provisions rather than as emergency trade restrictions.
This marks the third instance in which the U.S. has turned down India’s request for trade consultations, following earlier disputes involving steel and aluminum, and later automobiles and auto components.
The copper duties, which took effect on August 1 under Section 232 of the U.S. Trade Expansion Act, are indefinite and apply to semi-finished and derivative copper products. Section 232 allows the American president to restrict imports deemed a threat to national security.
“The United States is not maintaining this action pursuant to the safeguards/emergency action provision. These tariffs are, therefore, not safeguard measures, and there is no basis to conduct consultations under the AoS,” Washington told the WTO.
India maintains that the duties, even if justified on security grounds, function as safeguard measures and therefore fall under the WTO’s consultation requirement. India had formally sought consultations in September, citing concern over the impact on exporters.
India exported about $360 million worth of copper plates, tubes and other semi-finished products to the U.S. in FY25. However, India remains a net importer of copper, with total imports reaching $14.45 billion during the same period.
A WTO member may impose safeguard duties to protect domestic industries from surges in imports, but only after conducting an investigation and notifying other member countries.
India has previously reserved the right to impose retaliatory tariffs on certain U.S. goods in response to earlier trade actions.
The latest development comes as both countries continue negotiations toward a bilateral trade agreement. A U.S. Trade Representative delegation, led by Chief Negotiator Brendan Lynch, held talks with Indian officials in New Delhi this week. (Source: IANS)
