US Tariffs on Copper and India's Response
The United States has imposed a 50% tariff on copper imports, rejecting India's classification of these tariffs as safeguard measures under World Trade Organization (WTO) rules.
India's Position
- India claims the US tariffs are safeguard measures and sought WTO consultations in September.
- India aims to suspend duty concessions on American goods in response.
- India exported copper products worth USD 360 million to the US in FY25.
- It is a net importer of copper, with imports at USD 14.45 billion in 2024-25.
- Notable suppliers include Chile, Indonesia, and Australia.
- India imported USD 288 million of copper scrap from the US.
US Justification
- The US claims these tariffs are under Section 232 for national security reasons.
- Section 232 allows the US President to adjust imports that threaten national security.
- The tariffs aim to reduce dependency on foreign copper for sectors like defense, clean energy, and infrastructure.
Trade Implication
- The tariff issue arises as India and the US negotiate a bilateral trade agreement.
- India previously reserved rights to retaliate with tariffs on US steel, aluminum, and auto parts.
Background on Copper Tariffs
- India imposes:
- 2.5% import tariff on copper ore and concentrates.
- 5% on refined copper and copper alloys.
- 10% on certain copper articles.
The US measures are seen as protectionist, aiming to safeguard critical sectors by limiting foreign copper imports.
