India, US discuss metals tariff objection

Time of India

2 days ago

India is bilaterally discussing with the US its claim at the World Trade Organization (WTO) that there is no basis for New Delhi's proposal to retaliate against the American tariffs on steel and aluminium, said an official.
The issue will also be taken up in the India-US
bilateral trade agreement
(BTA) talks.
"The US has said our proposal to retaliate is baseless and we are bilaterally discussing with them at WTO. It's being discussed in the BTA talks also," said the official.
In early May, India proposed to levy retaliatory duties on 29 American products including apples, almonds, pears, anti-freezing preparations, boric acid and certain products made of iron and steel under the WTO to counter US tariffs on steel and aluminium. New Delhi told the WTO that these safeguard measures would affect $7.6 billion worth of imports into the US.
However, the US refused to discuss the Section 232 tariffs under the Agreement on Safeguards as it does not view the tariffs as a safeguard measure.
Section 232 authorises the US president to adjust imports of goods which can threaten to impair US national security.
"Given this rejection, India now faces several options including launching a formal WTO dispute under broader GATT rules, challenging the Section 232 tariffs as disguised protectionist actions, arguing that the US is abusing the national security exception," said a Delhi-based trade expert.
"This issue will be crucial in the India-US BTA trade talks," said the official.
A team of US officials is visiting India this week for discussions on the proposed interim
trade agreement
between the two countries.
The two aim to negotiate the first tranche or phase of a mutually beneficial, multi-sector BTA by fall this year and more than double the bilateral trade to $500 billion by 2030 from the current level of $191 billion.
The two sides are likely to agree on an interim trade agreement by the end of June, with New Delhi pushing for full exemption from the 26% reciprocal tariff on domestic goods.
On March 8, 2018, the US promulgated safeguard measures on certain steel and aluminium products by imposing 25% and 10% ad valorem tariffs respectively, effective March 23, 2018. On February 10, 2025, it revised the measures on imports of steel and aluminium articles, effective March 12.
India said the US failed to notify the WTO Committee on Safeguards on taking a decision to apply safeguard measures, and as an affected member with significant export interest, it has requested consultations with Washington.
(The correspondent is in Paris at the invitation of the commerce and industry ministry)