India has decided not to retaliate against the recent 25% US tariffs on steel and aluminium, as the impact on Indian exports is minimal. The government is instead focusing on ongoing trade negotiations with the United States to ensure a more balanced and mutually beneficial agreement.

India’s Trade Policy Strategy

A senior government official stated that while the US has not exempted any country from the tariffs, India's exports of these metals to the US are relatively low. The government believes that maintaining a positive bilateral trade relationship is more beneficial than engaging in retaliatory measures.

Previously, under Trump’s first term, India had responded to similar tariffs by imposing higher duties on US imports such as almonds and apples. However, this time, the situation is different as the tariffs are not specifically targeted at India.

Limited Impact on India’s Steel Industry

According to Sandeep Poundrik, India’s Steel Secretary, India exports less than 100,000 metric tonnes of steel to the US, which is not significant enough to warrant countermeasures. Instead, the Indian government is focusing on strengthening its domestic industry and reducing reliance on foreign markets.

Safeguard Duty on Chinese Steel Imports

Separately, India’s Directorate General of Trade Remedies (DGTR) has recommended a 12% safeguard duty on specific steel imports for 200 days. However, an industry expert clarified that this measure is aimed at preventing cheaper Chinese imports and is unrelated to the US tariffs.

Strengthening India-US Trade Ties

With ongoing trade negotiations between India and the US, the focus remains on reducing trade barriers and enhancing cooperation in multiple sectors, including technology and energy. The Indian government is optimistic about reaching a favorable agreement that will benefit both economies.

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