India hopeful of roll-back of US steel tariffs in early trade deal

India has also informed the WTO of its intention to impose retaliatory tariffs on the US if the steel and aluminium tariffs are not rolled back.
| Photo Credit:
Eduardo Munoz

India hopes to convince the US to scrap the 25 per cent tariffs on steel and aluminium imports, imposed earlier this year, in the early trade deal the two sides are aiming to strike within the on-going 90-day pause period on US reciprocal tariffs.

“Since the Trump regime does not require Congressional authority to roll back the steel and aluminium tariffs, it is one of the few things the US can immediately offer to India in the interim deal in addition to the exemption from the 26 per cent reciprocal tariffs,” a source tracking the matter told businessline.

The impact of the US tariffs on steel and aluminium, imposed by US President Donald Trump on March 12, is significant and may hit exports worth $7.6 billion annually, per estimates by the government.

Goyal’s pitch

Commerce & Industry Minister Piyush Goyal, who visited Washington DC last week to meet his US counterparts on the early trade deal and the proposed bilateral trade agreement (BTA), also made a strong case for the removal of the 25 per cent tariffs on steel and aluminium, the source added.

“As the US agreed to scrap the steel and aluminium tariffs for the UK in the trade deal recently struck between the two, although under a quota, India is hopeful that it can work out something similar,” the source said.

At the same time, India has also informed the WTO of its intention to impose retaliatory tariffs on the US if the steel and aluminium tariffs are not rolled back.

On April 2, Trump announced reciprocal tariffs on all countries that have a trade surplus with the US in his bid to provide a level playing field to American companies.

India got hit with a 26 per cent  reciprocal tariff but a week later Trump announced a 90-day tariff pause to negotiate trade deals. A 10 per cent baseline tariff on all countries continued to be imposed.

“The US has ambitious demands even for the interim deal, which includes not just tariff cuts but also flexibilities in digital trade rules, government procurement and other areas. India also expects something in return in the interim deal itself and not wait for the first tranche of the India-US BTA, with a deadline of September-October,” the source said.

Published on May 25, 2025