India to raise steel, aluminium tariff issue with US next week: Official

India has taken up the issue with the US over the re-imposition of duties by America on steel and aluminium and the matter is expected to figure during a meeting next week, an official said.

The official said a similar duty imposition case was amicably resolved by the US and India under a mutually agreed solution (MAS) at the WTO (World Trade Organization).

The previous Biden administration, in 2018, had imposed a 25 per cent duty on certain steel items and 10 per cent on aluminium products on grounds of national security. In retaliation, India in June 2019 slapped customs duties on 28 US products, including almonds, and walnuts. India had also filed a complaint in the WTO.

In 2020, both sides decided to amicably resolve all seven of their WTO disputes, including the one on steel. In response, India withdrew the retaliatory tariffs.

As part of the agreement, India rescinded additional duties on eight US products, and in return, the US agreed that it would strive to ensure effective market access opportunities for Indian exporters of steel and aluminium.

But now, the Trump administration again imposed sweeping 25 per cent tariffs on steel and aluminium from March 12 on all countries, including India. India has again opposed these measures and has sought consultation under the WTO's agreement on safeguards. However, the US has stated that the tariffs are imposed on national security grounds and they are not safeguard measures.

Safeguard measures in the form of duty or quantitative restrictions are trade remedies available to the WTO member-countries. They are imposed to provide a level-playing field to domestic players in case of sudden and significant increase in imports of a product.

"The issue is under discussion with the US," the official said. An Indian official team is visiting Washington for crucial trade talks. The three-day deliberations will start from April 23.

A trade expert said imposition on duties by the Trump administration is a violation of MAS, which is a mechanism through which WTO members resolve disputes amicably, without going through the formal process under WTO's dispute settlement mechanism. It permits the nations to reach a mutually satisfactory outcome through processes such as withdrawing of complaints, or other agreed actions.

As per reports, India's steel and aluminum exports to the US stood at USD 450 million in calendar year 2024.