"We are committed to free trade. We have taken note of it... It is an unfortunate development," Mr Prabhu said about the US decision.
"We will take up this issue bilaterally with all the countries," he said in Delhi.
The US recently imposed hefty tariffs on imported steel and aluminium, citing national security concerns and the need to protect American industries from "unfair" business practices, triggering fears of a global trade war.
US President Donald Trump signed two proclamations that levied a 25 per cent tariff on steel and a 10 per cent tariff on aluminium imported from all countries except Canada and Mexico.