India in talks with US for Steel and Aluminum Tariff Exemption

09 Jun 2023 CW Team

According to sources, India is currently engaged in discussions with the United States in an attempt to secure an exemption from the steel and aluminum tariffs that were imposed by former US President Donald Trump. As part of the negotiations, India has offered to withdraw certain retaliatory tariffs, particularly on agricultural goods like almonds and walnuts. However, there are concerns about the inflexibility of US negotiators, casting doubt on the likelihood of obtaining an exemption for steel tariffs.

The discussions are expected to take place during Indian Prime Minister Narendra Modi's upcoming visit to the US later this month. The Indian officials preferred to remain anonymous due to the lack of authorization to speak to the media. The Indian trade ministry, the Office of the US Trade Representative, and the US Department of Commerce did not respond to requests for comment.

Despite the ongoing discussions, a senior executive from a US industry group expressed skepticism, stating that the US government is unlikely to consider such a request. The steel and aluminum tariffs were initially imposed by Trump in 2018 under Section 232 of a 1962 act that grants the president the authority to restrict imports. In retaliation, India imposed tariffs on various US products.

It is worth noting that in December, the World Trade Organization ruled against the US tariffs, deeming them in violation of global trading rules. Nonetheless, during a US Congressional Steel Caucus hearing, several leaders from the steel industry expressed support for maintaining the tariffs.

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