The US has said that it is willing to discuss with India the additional tariffs it has imposed on steel and aluminium but outside the framework of the World Trade Organization (WTO).
Apart from steel and aluminium tariffs, the US has said that it is open to discuss any other issue of trade and tariffs with India but not under the agreement on safeguards of the WTO. The US remarks came in response to India’s request to the WTO for consultations under the safeguard agreement on 25% additional duties on steel and aluminium imposed by the Donald Trump administration since March 12. India has said that notwithstanding the US’ characterisation of these measures as security measures, they are in essence safeguard measures.
In its reply, the US has said that the additional duties have not been imposed as a safeguard measure but under a national security statute — Section 232. “These actions are not safeguard measures and, therefore, there is no basis to conduct consultations under the agreement on safeguards with respect to these measures,” the US said.
In 2018 too, the first Trump administration had imposed 25% additional duties on steel and aluminium. India had retaliated in 2019 by imposing additional tariffs on imports from the US of almonds, apples, chickpeas, lentils, walnuts, boric acid ,and diagnostic reagents, among other products. Both the impositions were challenged at the WTO by the respective parties. In 2023, during Prime Minister Narendra Modi’s visit to the US under Joe Biden’s presidentship, both sides agreed to end all their disputes at the WTO, including the steel and aluminium tariffs and reciprocal action by India. In all, seven WTO disputes were ended by India and the US through negotiations.
Other disputes at the WTO between the two countries included countervailing measures by the US on certain hot-rolled carbon steel flat products from India. The US filed a complaint against certain measures by India relating to solar cells and solar modules as well as the renewable energy sector.
The second Trump administration has brought back tariffs on steel and aluminium but this time India and the US are in the midst of discussions on a bilateral trade agreement (BTA). On Thursday, Trump said the US was moving very quickly for a deal with India.