U.S. Commerce Secretary Gina Raimondo recently met with India's Minister of Commerce and Industry, Piyush Goyal, in New Delhi to discuss a range of bilateral trade issues, including the unresolved Section 232 tariffs on steel and aluminum imports. The meeting, which took place on March 10, 2023, aimed to strengthen economic ties and address legacy trade disputes between the two nations.

A central point of discussion was India's request for an exemption from the additional duties on steel and aluminum imposed by the previous U.S. administration. These tariffs, specifically 25% on steel and 10% on aluminum, were enacted in March 2018 under Section 232 of the U.S. Trade Expansion Act of 1962, citing national security grounds. India, a significant trading partner, has sought a resolution similar to agreements the U.S. has reached with other allies.

In response to the U.S. tariffs, India implemented retaliatory duties on 28 specific U.S. products in June 2019. While the Biden administration has continued to uphold the Section 232 tariffs, it has granted quota-based exemptions or modified arrangements to countries including the European Union, the United Kingdom, and Japan. India has advocated for comparable consideration, emphasizing its role as a strategic partner and its desire to remove barriers to trade.

The discussions between Secretary Raimondo and Minister Goyal form part of broader efforts to enhance the U.S.-India economic partnership. Bilateral trade between the two countries reached an estimated $191 billion in the fiscal year 2022-23, highlighting the growing interdependence of their economies. Resolving long-standing trade irritants, such as the Section 232 tariffs, is considered crucial for further expanding this relationship.

Key details regarding the tariffs and their implications include:

  • Origin: Imposed by the Trump administration in March 2018 under Section 232 of the Trade Expansion Act.
  • Products Affected: 25% tariff on steel imports, 10% tariff on aluminum imports.
  • India's Response: Retaliatory tariffs on 28 U.S. products implemented in June 2019.
  • Current Status: Tariffs remain in effect under the Biden administration for India, despite resolutions with other allies.

During the meeting, Secretary Raimondo acknowledged the progress made in discussions and indicated her intention to report back to the U.S. President. Minister Goyal underscored the importance of resolving these legacy issues to foster a more predictable and robust trade environment. Beyond the tariffs, the agenda also covered broader economic cooperation, including easing non-tariff barriers, promoting collaboration in critical and emerging technologies, and strengthening supply chain resilience. These discussions are expected to continue within the framework of the U.S.-India Trade Policy Forum (TPF), with both nations expressing a commitment to finding a mutually beneficial resolution and deepening their economic engagement. The outcome of these ongoing negotiations will determine the future trajectory of these specific trade restrictions.