New Delhi: The US is unlikely to grant any relief to India’s steel and aluminum producers during President Donald Trump’s visit next week.
Indian trade negotiators, who have been trying to hammer out a formula for a limited trade deal during the US leader’s maiden India visit, were reportedly seeking concession for the country’s steel and aluminum producers.
However, according to sources in the industry, President Donald Trump is unlikely to accept this demand.
“President Trump will not do away with the import duties on steel and aluminum products imported from India,” said Sushim Banerjee, Director General of the Institute for Steel Development and Growth.
In 2018, the Trump administration had imposed 25% duty on steel and 10% duty on aluminum products imported from India.
According to industry sources, it hurt India’s export of steel and aluminum to the country. It is believed that the export of these two commodities worth $1.2 billion has been hit due to these duties.
Read more:India-US might trump trade differences during US Prez's visit: Experts
In a retaliatory measure, India also imposed tariffs on 28 items imported from the USA that were believed to be have an equal and opposite impact on the US exports to the country.
India was seeking restoration of GSP benefits and lowering of import duties on the country’s steel and aluminum products to conclude a limited trade deal during President Trump’s visit this month.
Under the GSP benefits, Indian exports worth over $6 billion were beneficiary of relaxed norms applicable to developing countries under the 45 year old mechanism, but it was withdrawn by the US government last year.
According to the industry sources, President Trump is highly unlikely to accept Indian demand ahead of the Presidential election.
“Trump will not do anything that will harm domestic steel industry as they have been staunch supporters of him,” Sushim Banerjee told ETV Bharat.
“He will not relax the norms for import of steel from India, China and CIS countries,” he added.
(Article by Senior Journalist Krishnanand Tripathi.)
