
India raises tariff objections, preps for US meeting
India has raised concerns with the US over the recent re-imposition of duties on steel and aluminium by the President Donald Trump’s administration, labelling it a violation of the previously agreed Mutually Agreed Solution under the World Trade Organization (WTO), as per a BusinessLine report.
India’s commerce ministry did not respond to a Kallanish request for confirmation on Monday.
In 2018, US had first imposed a 25% duty on steel and 10% duty on aluminium, citing national security grounds. India announced retaliatory customs duties on 28 products and filed a WTO complaint in 2019. The seven WTO disputes, including one pertaining to steel, were subsequently resolved amicably in 2020, leading India to withdraw its retaliatory tariffs on US products.
However, with duties on steel and aluminium being reimposed from 12 March, India is reportedly seeking WTO consultations, noting that they are safeguard measures. The US maintains they are based on national security.
As per the report, the issue will be discussed during a key trade meeting in Washington starting Wednesday. The commerce ministry's additional secretary, Rajesh Agrawal, is leading the India team for the three-day in-person round of talks. Agrawal was appointed as the next commerce secretary and will take office on 1 October. The two countries have finalised the terms of references (ToRs) for the agreement.
The talks are being fast-tracked to utilise the 90-day tariff pause until 9 July, announced by the Trump administration on 9 April. Despite the pause, the 10% baseline reciprocal tariffs imposed on several countries, including India and China, on 2 April remains in effect, as well as 25% duties on steel, aluminium and auto components.
On 29 March, India concluded a four-day trade level talks with a US delegation in New Delhi. The commerce ministry said the India-US in-person trade talks will be held with the goal of finalising its first tranche by fall 2025.
A source notes: “It is a positive news for the India’s steel and aluminium sector. But US would like to club it with signing of [a Bilateral Trade Agreement]. Let us wait and watch.”
In 2024, India's steel and aluminium exports to the US totalled $450 million.
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Anonymous
Very good overview of the weekly steel market.
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