US Rejects India’s WTO Claim on 50% Copper Tariffs

The United States has dismissed a representation from India that its 50% duty on copper imports constitutes a safeguard measure under WTO rules. 

The US response, communicated on November 6, asserts that the tariff is a national security action under Section 232, and therefore India lacks grounds for seeking suspension of US trade concessions. 

Key Details

The United States’ 50% tariff on certain copper and derivative products came into effect on August 1, prompting India, an exporter of copper items worth around $360 million to the US in FY25, to initiate consultations under the WTO Safeguards Agreement in September. 

The US maintains that the tariff was imposed under Section 232, a national security measure, rather than as a safeguard action, which would require injury investigations and formal notification to the WTO.

India imported approximately $14.45 billion worth of copper in 2024–25, mainly from Chile, Indonesia and Australia, while the US supplied about $288 million of copper scrap during the same period. 

Domestically, India imposes a 2.5% import duty on copper ore and concentrates, 5% on refined copper and alloys, and 10% on certain copper articles. The issue carries added significance as India and the US continue negotiating a bilateral trade agreement amid rising trade tensions.

Implications for Trade and Policy

India’s claim to suspend US duties or ask for retaliation hinges on the classification of the US tariffs as safeguards. With the US rejecting that categorisation, India’s legal basis at the WTO weakens. 

For Indian exporters of copper products, this could mean heightened trade risk. The episode also underscores the broader friction between India and the US over tariff and market-access issues, especially as negotiations for a trade deal progress.

Read More: Trump Announces Tariff Dividend of $2,000 for Americans, Excluding Rich!

Conclusion

The US rebuttal of India’s safeguard argument signals a major challenge for New Delhi’s trade strategy at the WTO and raises tensions in the bilateral trade dialogue. India’s next steps, whether through retaliation or re-negotiation, will be watched closely by exporters and policymakers alike.

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