India Proposes Retaliatory Duties After EU Extends Safeguard Measures on Some Steel Products
India suggests retaliatory taxes following the EU’s extension of protective measures on some steel goods. March 28, New Delhi (PTI) Since the two sides cannot agree on the European Union’s restrictive safeguard measures on specific steel products, India has suggested applying retaliatory taxes under WTO regulations on items imported from the EU.
India said it “reserves the right to suspend substantially equivalent concessions or other obligations” under a clause of the Agreement on Safeguards on the EU’s trade in a March 27 letter to the World Trade Organization (WTO).
India has lost USD 1.472 billion in trade annually due to the EU’s action in 2023–2024, of which USD 368 million would have been collected in duty at a 25% duty rate. “The measure has caused a cumulative trade loss of USD 6.92 billion to India since 18 July 2018, on which duty collection would be USD 1.73 billion,” the notice stated.
On March 19, 2025, India and the EU conducted online consultations over the EU’s action. “The EU and India discussed the measure. It stated that the EU and India could not agree on trade compensation or the maintenance of significantly equal privileges. The EU’s safeguards for certain steel products were the subject of the discussions.
Before this, the EU extended safeguard tariffs for a further two years, until 2026, on imports of specific steel product categories, with an out-of-quota charge of 25%. This was the second extension of the protections provided by the Tariff Rate Quota (TRQ), which was initially implemented in 2018. Later, it was extended until June 2024 and then again until June 2026.
According to a trade expert, they have increased restrictions again following the US’s imposition of a 25 percent higher levy on steel and aluminum. India, which has a significant stake in steel exports to the EU, is among the nations impacted by this policy.
India’s iron, steel, and related items exports to the EU climbed from USD 6.1 billion in 2022–2023 to USD 6.64 billion in 2023–2024. India is a significant exporter of the items in question, and the EU’s action is against international trade regulations.
The WTO is a worldwide organization with 166 members headquartered in Geneva that sets standards and guidelines for imports and exports and resolves trade disputes between its members. India is pursuing a free trade deal with the EU to strengthen economic and investment relations. India’s imports decreased by around 3% to USD 59.38 billion in 2023–24, while its exports to the EU increased by 1.5% to USD 76 billion.
