India has formally requested consultations with the United States at the World Trade Organization (WTO) over Washington’s decision to impose a steep 50% tariff on certain copper products imported from India. The move, announced on September 2, 2025, marks the third such WTO challenge initiated by New Delhi against the US in recent years, following similar disputes over steel, aluminium, and auto components.
The copper tariff, which came into effect on August 1, 2025, was introduced under Section 232 of the US Trade Expansion Act of 1962, citing national security concerns. However, India contends that the measure is, in essence, a safeguard action and violates WTO norms due to lack of prior notification and consultation.
🧭 Key Highlights of India’s WTO Challenge
| Parameter | Details |
|---|---|
| Tariff Rate | 50% on semi-finished and derivative copper products |
| US Justification | National security under Section 232 |
| India’s Position | De facto safeguard measure, WTO violation |
| WTO Agreement Invoked | Agreement on Safeguards |
| Consultation Request Date | September 2, 2025 |
| Affected Trade Volume | $360 million worth of copper exports to US in FY25 |
India has asked the US to set a mutually convenient date and venue for consultations, emphasizing its significant export interest in the affected products.
🔍 Background: US Copper Tariff and Strategic Rationale
The US administration claims the tariff is necessary to reduce dependence on foreign copper, which it views as critical to sectors such as defence, clean energy, semiconductors, and infrastructure. Copper is a foundational material for electric vehicles, power grids, and military electronics.
| Sector Using Copper | Strategic Importance |
|---|---|
| Defence Electronics | Secure communications, radar systems |
| Clean Energy | Solar panels, wind turbines |
| Electric Vehicles | Battery systems, wiring harnesses |
| Semiconductors | Heat sinks, circuit boards |
| Infrastructure | Power transmission, construction |
Despite these claims, India argues that the measure lacks transparency and fails to meet WTO requirements for safeguard actions.
📉 India’s Copper Trade Snapshot
India is a net importer of copper, sourcing raw materials from Chile, Indonesia, and Australia. However, it also exports semi-finished copper products such as plates, tubes, and alloys—primarily to the US, EU, and Southeast Asia.
| Trade Flow | FY25 Value (USD) |
|---|---|
| Copper Exports to US | $360 million |
| Copper Imports (Total) | $14.45 billion |
| Copper Scrap Imports from US | $288 million |
| Net Trade Balance (Copper) | Negative |
The new tariff threatens to disrupt bilateral copper flows, making Indian exports less competitive and impacting downstream industries in both countries.
🔥 India’s Legal Argument at WTO
India’s WTO communication asserts that the US failed to notify the WTO Committee on Safeguards before applying the tariff, as required under Article 12 of the Safeguards Agreement. It also challenges the use of national security as a blanket justification.
| Legal Provision Invoked | India’s Argument |
|---|---|
| WTO Safeguards Agreement | Tariff is a safeguard in disguise |
| Notification Requirement | US failed to inform WTO Committee |
| Consultation Clause | India entitled to formal dialogue |
| Article XXI (Security Exception) | Misused to bypass trade rules |
India has reserved the right to impose retaliatory duties on select US products if consultations fail to resolve the dispute.
🧠 Expert Commentary and Industry Reaction
| Expert Name | Role | Comment |
|---|---|---|
| Meera Iyer | Trade Policy Analyst | “This is a classic case of disguised protectionism.” |
| Rajiv Bansal | Copper Industry Consultant | “Indian exporters will suffer unless WTO steps in.” |
| Dr. Rakesh Sinha | International Law Scholar | “Security exceptions must be narrowly applied.” |
Industry bodies such as the Engineering Export Promotion Council (EEPC) and the Federation of Indian Export Organisations (FIEO) have urged the government to expedite relief measures and explore alternative markets.
📦 Comparative Tariff Structures: India vs US
India’s copper import duties are significantly lower than the US’s new 50% rate, highlighting the asymmetry in trade policy.
| Product Type | India Import Duty (%) | US Import Duty (%) (Post-Aug 2025) |
|---|---|---|
| Copper Ore and Concentrates | 2.5% | 50% |
| Refined Copper and Alloys | 5% | 50% |
| Copper Articles (Tubes, Plates) | 10% | 50% |
Think tank GTRI noted that the contrast between the two countries’ tariff regimes underscores Washington’s shift toward protectionism.
📌 Conclusion
India’s decision to seek WTO consultations over the US’s 50% copper tariff marks a critical moment in global trade diplomacy. As copper becomes increasingly strategic, the dispute reflects deeper tensions between national security claims and multilateral trade norms. With $360 million in exports at stake and broader implications for India-US economic ties, the outcome of these consultations could shape the future of copper trade and safeguard enforcement worldwide.
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Disclaimer: This article is based on publicly available government statements and media reports as of September 3, 2025. It is intended for informational purposes only and does not constitute legal, diplomatic, or investment advice.
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