India-US Talks Next Week: Key Focus on Steel and Aluminium Tariff Discussions

India is raising concerns with the U.S. about recently re-imposed tariffs on steel and aluminum. This matter will be part of discussions in an upcoming meeting, according to an official. Previously, a similar situation was resolved through a mutually agreed solution (MAS) at the World Trade Organization (WTO).

Back in 2018, the Biden administration introduced a steep 25% duty on specific steel products and a 10% duty on aluminum, citing national security. In response, India imposed customs duties on 28 U.S. products, including beloved items like almonds and walnuts. India also lodged a complaint with the WTO.

By 2020, both nations sought to move past these trade disputes and agreed to resolve all seven ongoing cases at the WTO. As part of this agreement, India eliminated retaliatory tariffs on several U.S. goods, and the U.S. promised better market access for Indian steel and aluminum exports.

However, the Trump administration reintroduced the 25% tariffs on these materials in March 2023, affecting all nations—including India. India has opposed these tariffs and requested consultations under the WTO, but the U.S. maintains that they stem from national security concerns, not as safeguard measures.

Safeguard measures are intended to protect domestic industries from a sudden influx of imports that can disrupt local markets. Trade experts argue that reapplying these tariffs violates the principles of the MAS, which allows countries to resolve trade disputes amicably, avoiding prolonged formal proceedings.

Amid these developments, an Indian delegation is heading to Washington for critical trade talks, starting April 23. Recently, India’s exports of steel and aluminum to the U.S. were valued at around $450 million in 2024. These discussions are vital for restoring trade balance and fostering cooperation between the two nations.

Moving forward, it remains crucial to monitor how these trade negotiations unfold. The outcome could significantly impact not only exporters but also the broader economic relationship between India and the United States. For a deeper insight into global trade dynamics and tariff implications, consult the WTO’s official resources.

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