India unlikely to get US exemption on Steel & Aluminium tariffs

In exchange for the removal of some duties on American agricultural products, India had asked the United States for a waiver from its steel and aluminum tariffs. However, according to individuals involved with the negotiations, Washington is not taking the offer seriously.

Indian officials have offered to remove retaliatory tariffs on some agricultural products like almonds and walnuts as part of a deal during Indian Prime Minister Narendra Modi's visit to the United States, according to two Indian sources. Negotiators in New Delhi and Washington have been in talks in an effort to reach an agreement.

From June 21 to June 24, Prime Minister Narendra Modi will make an official state visit to the US. He will stay at the White House and be hosted by US President Joe Biden.

According to a U.S. source involved with the negotiations, "India has raised the issue but they've been fairly quickly rejected by the U.S. team, so it isn't in serious consideration right now."

In exchange for a waiver on steel tariffs, India has proposed to remove retaliatory levies on several agricultural products, including almonds and walnuts. In conversations with India, U.S. representatives have been quite clear that they are not considering exempting India from Section 232 tariffs.

India is also open to discussing any more potential trade measures that American officials may put forth. Even though there were hopes of achieving some sort of compromise during Modi's visit, an Indian official source claimed that American negotiators were not "flexible."

An email for comment was not answered by the Indian trade ministry.

The World Trade Organization concluded in December that Trump's tariffs on imports of steel and aluminum were illegal under international trade agreements, a decision that Washington criticized.

Using Section 232 of a 1962 law that grants the government the authority to impose import restrictions, then-U.S. government Donald Trump levied a 25% tax on all imports of U.S. steel and a 10% tariff on imports of aluminum in 2018. Almonds, apples, and walnuts were among the 28 American imports that were subject to duties by India in response.

Several executives from the steel sector supported keeping the tariffs in place on Wednesday during a hearing of the US Congressional Steel Caucus. The US government is unlikely to agree to removing the duties, according to Kevin Dempsey, president of the industry trade group American Iron and Steel Institute, who spoke to Reuters.

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