India has formally sought consultations with the United States under the World Trade Organisation’s (WTO) safeguard agreement regarding Washington’s recent imposition of a steep 50 per cent tariff on certain copper products.

The duty, introduced on July 30 and effective from August 1, 2025, applies indefinitely on all such imports into the US. India sees this decision as a protectionist safeguard measure disguised as a national security policy, thereby violating multilateral trade norms under the WTO framework.

The development comes amid already strained trade relations between the two countries following earlier disputes over US tariffs on steel, aluminium, and auto components.

In its formal communication to the WTO, India argued that the US failed to notify the WTO Committee on Safeguards before applying this tariff, thereby breaching transparency obligations under multilateral rules.

India maintains that the measure is not a matter of legitimate national security but rather a safeguard to protect American domestic industries under the guise of national interest. As a country with significant export interests in the affected copper product categories—tubes, plates, and semi-finished copper goods—worth around USD 360 million in FY25, India has demanded urgent consultations with the US.

New Delhi further emphasised the need for an early reply and setting a mutually agreed date for discussions, signalling its intention to strongly protect its trade interests at the global platform.

India’s copper trade profile presents a complex picture. Despite being a net importer, with imports standing at USD 14.45 billion in 2024-25, largely from suppliers such as Chile, Indonesia, and Australia, Indian copper exports to the US remain a crucial segment of bilateral trade.

In FY25, copper exports to the US accounted for USD 360 million, with categories including refined copper, copper alloys, plates, tubes, and articles. Conversely, India also imported around USD 288 million worth of copper scrap from the United States, indicating a two-way copper trade flow. The recent tariff disrupts this balance and threatens to make copper scrap imports from the US economically unviable, potentially reorienting India’s sourcing strategies.

The imposition of the 50 per cent tariff highlights stark contrasts in the two economies’ trade policies. According to the economic think tank GTRI (Global Trade Research Initiative), India maintains relatively low copper import tariffs—2.5 per cent on ore, 5 per cent on refined copper and alloys, and 10 per cent on certain articles—underscoring its relatively open trade regime.

This stands in sharp contrast with Washington’s protectionist measure, especially notable since copper is a foundational raw material for critical industries in the US, such as defence, clean energy, electric vehicles (EVs), power grids, and semiconductors. The US government has justified the policy citing the need to reduce dependence on foreign copper supply chains and strengthen domestic self-reliance in strategic sectors.

The copper tariffs are part of a widening spectrum of contentious trade measures affecting India-US relations. Previously, India disputed American tariffs on steel, aluminium, and auto components at the WTO, only to have Washington dismiss India’s arguments. In retaliation, India has already reserved the right to impose counter-measures.

The escalation comes at a sensitive time since both countries are in the middle of negotiations for a Bilateral Trade Agreement (BTA), aimed at doubling bilateral trade to USD 500 billion by 2030 from the current figure of USD 191 billion.

The sixth round of BTA talks, originally scheduled in late August, has now been postponed after the US team deferred its India visit following the copper tariff announcement. No new dates have yet been finalized. Negotiators indicate that resolving the tariff impasse will be a prerequisite for meaningful progress in the BTA.

India faces further pressure due to additional US penalty tariffs—an extra 25 per cent duty imposed from August 27—linked to India’s continued import of crude oil and military equipment from Russia amid geopolitical tensions.

This follows an earlier 25 per cent tariff on Indian goods from August 7, making Indian officials describe the measures as “unjustified, unfair, and unreasonable.” This multi-pronged tariff regime now affects multiple product categories and complicates bilateral economic relations, even as India reiterates its long-term trade and energy engagements with multiple global partners for strategic autonomy.

Despite these frictions, India’s exports to the US have been growing. For the April–July period of FY26, Indian exports to the US rose 21.64 per cent to USD 33.53 billion, while imports grew 12.33 per cent to USD 17.41 billion.

The US remains India’s largest trading partner within this period, accounting for USD 12.56 billion in bilateral trade. Exports to the US comprise approximately 20 per cent of India’s total exports, while Indian goods represent only about 2.5 per cent of the US’s total imports, highlighting the asymmetry in dependence.

Prime Minister Narendra Modi in his August 15 Independence Day address reaffirmed that India will stand firm to protect farmers and fishermen and will not compromise livelihoods in politically sensitive sectors like agriculture and dairy.

This statement is significant in the context of the BTA negotiations, where the US has been pressing for expanded access to India’s Agri-dairy markets—an issue deeply tied to India’s domestic political sensitivities. Analysts note that resolving the copper tariff dispute and other trade frictions will be key not only for the BTA’s conclusion but also for the broader strategic partnership, which increasingly combines economic, geopolitical, and technological cooperation.

India’s move to challenge the US copper tariffs at the WTO represents a continuation of its proactive stance against unilateral American trade measures. The 50 per cent tariff not only impacts India’s copper exports worth hundreds of millions of dollars but also risks undermining the broader trajectory of India-US economic engagement at a time when both nations aim to strengthen ties and achieve USD 500 billion in bilateral trade by 2030.

The issue also exposes competing priorities: US protectionism and self-reliance in critical sectors versus India’s focus on fair global trade practices and safeguarding farmers’ and small producers’ interests. With bilateral trade talks stalled, the manner in which both sides address this dispute will likely determine the pace and success of their strategic trade cooperation in the years ahead.

Based On PTI Report