New Delhi, Aug. 6 -- India reserves the right to retaliate against the US for imposing safeguard duties on steel, aluminium and related products, with Washington rejecting New Delhi's request for consultations as prescribed by the World Trade Organisation, minister of state for commerce Jitin Prasada told the Lok Sabha on Tuesday. The parliamentary statement came on a day US President Donald Trump threatened to impose additional punitive tariffs on Indian goods over continued Russian crude oil purchases, highlighting mounting tensions even as both countries remain "actively involved" in bilateral trade agreement discussions, according to the government. "The United States did not accept India's request for consultations under the WTO Agreement on Safeguards concerning US tariffs on steel, aluminium, and related derivative products," Prasada said in a written reply to MP Asaduddin Owaisi. The US has maintained that measures imposing 50% duties on steel and aluminium, plus 25% on automobiles and auto components, were introduced under Section 232 of domestic law on national security grounds rather than as safeguard measures requiring WTO consultation. "The US has taken the position that the measures fall within the scope of Article XXI of the General Agreement on Tariffs and Trade 1994, which allows exceptions for national security," Prasada explained, referring to provisions that permit unilateral action based on an importer's self-judgement without consulting the exporting country. However, India contests this interpretation, viewing the measures as safeguard actions that should have been notified and subjected to consultations under WTO rules. "India considers these measures to be safeguard actions that should have been notified and subjected to consultations under the Agreement on Safeguards. India has accordingly reserved its right to suspend substantially equivalent concessions due to the US's non-compliance with its obligations," Prasada said. The controversy stems from the Trump administration's unilateral decision on February 10 to impose 25% levies on steel and aluminium imports, effective from March 12. Washington doubled tariffs on the metals to 50% from June 4, citing national security concerns. The US also raised tariffs on passenger vehicles, light trucks and certain automobile parts from India to 25% from March 26, prompting India to approach the WTO on May 9. Section 232 of the US Trade Expansion Act of 1962 allows the president to restrict imports that "threaten to impair" national security. However, safeguard duties are typically levied to check import surges causing economic injury and must be WTO-compliant, requiring consultations between parties before or immediately after imposing measures. Despite mounting tensions over Trump's tariff actions, both countries continue pursuing a bilateral trade agreement equivalent to a free trade arrangement, the minister said. "Government of India is actively involved in the discussions on the India-USA Bilateral Trade Agreement with the Government of the United States with the aim to expand trade and investment and deepening the India-US trade relationship to promote growth that ensures fairness, national security and job creation," Prasada told Parliament. The minister confirmed that negotiations launched in March 2025 have completed five rounds, with the most recent held from July 14-18 in Washington. However, he did not mention the sixth round scheduled for August 25 in New Delhi. People familiar with the matter confirmed the five-day meeting remains scheduled "as of now," though they noted Trump's unpredictability makes the talks' future uncertain. "India will safeguard its sovereignty, its strategic relations with other nations and protect its national interests, including farmers and MSMEs," one person said, requesting anonymity. Prasada clarified India's approach to protecting domestic interests during trade negotiations, explaining that international agreements allow for "sensitive, negative, or exclusion lists-categories of goods on which limited or no tariff concessions are granted." He added that countries retain recourse to trade remedial measures such as anti-dumping and safeguards on imports during periods mutually agreed under free trade agreements in case of import surges causing domestic industry injury....