US Tariffs On Indian Steel, Aluminum Likely To Persist Despite Indian Push During Modi Visit

This story was originally published on the Benzinga India Portal.

India is reportedly unlikely to get the United States to roll back tariffs on steel and aluminum during Prime Minister Narendra Modi’s planned visit to Washington later this month.

What Happened? India has requested an exemption from U.S. steel and aluminum tariffs, offering to remove some tariffs on US agricultural goods in return, but the U.S. is not seriously considering the proposal, sources told Reuters.

Negotiations between the two countries are ongoing ahead of the Indian leader's upcoming visit, with the country's officials suggesting the withdrawal of retaliatory tariffs on products like almonds and walnuts.

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Discussions have yet to yield positive results, as U.S. officials have indicated their unwillingness to exempt India from the tariffs, imposed by former President Donald Trump in 2018.

Last year, the World Trade Organization found the U.S. tariffs in contravention of global trading rules, a decision criticized by Washington.

Indian government sources told Reuters that U.S. negotiators were not “flexible”, though the Indian camp hopes to reach some agreement during Modi’s visit. India is also reportedly willing to consider alternative trade arrangements from the U.S. team.

During a congressional hearing on Wednesday, industry leaders, including the American Iron and Steel Institute, voiced support for maintaining the tariffs. Kevin Dempsey, president of the trade group, believes the US government is unlikely to agree to their withdrawal.

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