India to Cut Down Tariff Prices on Steel and Aluminium for the US

India has ensured to cut down the retaliatory taxes imposed on aluminum and steel for the US.        

PM Modi’s state visit to the US has underlined critical concerns between both nations in the education, economic, defense, and cooperative space. The visit has remarkably captured various historical moments, putting an end to six long-prevailed disputes at the World Trade Organization (WTO). One important agreement that came under control was India’s imposition of retaliatory tariffs on US products like steel as a counteract of US Section 232.

The US Section 232 national security measures on steel and aluminum was a measure taken by the US government to conduct comprehensive investigations in determining the effects of imports on the United States. India, meanwhile, as a retaliatory measure, imposed tariffs on these US products, which will likely be removed as a part of US-India diplomacy. This development is anticipated to stimulate trade between the US and India, offering crucial tax benefits for Indian reporters.

Indian Commerce Minister Piyush Goyal commented that PM Modi’s visit to the US is highly significant, where President Biden has assured markets regarding the elimination of tariffs for the import of steel and aluminum products from India.

Indian experts firmly believe that excluding Indian exports from additional scrutiny will attribute a welcome relief for businesses. India has thrived as the major export of steel and aluminum to the US for various decades. The sudden measure of the US to protect its domestic industry has led to the imposition of tariffs and trade restrictions on steel and aluminum imports from various nations, including India. Thus, the decision of India to cut down the tariff can be considered a positive shift in the United States’ approach to strengthening trade relations with India.

Disputes concerning these tariff issues will be resolved through mutual agreement between both nations, and an ultimate understanding is crucial, owing to the sheer volume of trade between both nations. The bilateral goods trade between India and the US has experienced a critical rise of about 128.8 billion USD in 2022-2023, surpassing the previous annual period. This reduce tariff prices will reinstate and expand market opportunities for agricultural producers and manufacturers in America.