The World Trade Organization on Monday upheld in part a judgement that the US broke global trade rules by imposing import duties on Indian steel products, in a mixed ruling that also found elements in Washington's favour.
In one of the most complicated cases it has ever considered, the WTO's Appellate Body reversed some of the findings made by the organisation's dispute settlement panel in July and upheld others.
It found in favour of both sides in technical elements of the dispute, but concluded that the US was "inconsistent with its obligations" and should be brought into line.
India filed its complaint at the WTO in 2012, after Washington imposed duties of nearly 300 percent on imports of products including steel pipes.
The US applied the duties because it felt Indian steel manufacturers were benefitting from unfair subsidies.
The WTO polices global trade accords in an effort to offer its member economies a level playing field.
Its panels can authorise retaliatory trade measures by the wronged party if its rival fails to fall into line.