India Seeks Away To Avoid American Tariffs On Rolled Steel And Aluminum

India has asked the United States to exempt it from higher tariffs on steel and aluminum, saying Indian exports of these two products pose no threat to America's security.

Last week, US President Donald Trump suspended tariffs for Argentina, Australia, Brazil, South Korea, Canada, Mexico and the European Union, the US's largest trading partner, until May 1, 2018, as discussions continue.

The administration said non-listed countries could discuss with Washington how to address US national security concerns caused by steel imports from their country.

India's Commerce Department has written an appeal to the US government, asking them to also exempt their country from a 25 percent tax on steel and 10 percent on aluminum to protect US national security and economic interests. The grounds that, according to experts, are assumed are primarily directed against China.

“Tariffs will certainly affect our exports. And it is clear that with regard to the share of imports and the type of rolled steel, there is no security threat to the United States, ”said Steel Minister Chodhari Birand Singh.

The US accounts for 2 percent of India's steel exports, but the move comes at a time when long-term trade differences between the two countries are already exacerbating, fueled by tariffs India has imposed on dozens of products in recent months as part of steps to boost domestic industry.

Indian Foreign Minister Vijay Gohale met with US Trade Representative Robert Lylizer ten days ago and asked why the new trade measures are not being applied to India. “India will not be a security threat. And if you look at the trade deficit, some of the positions have definitely decreased, ”the official said. India is one of the countries that the Trump administration named on its list of states with which the United States had large deficits.

Of great concern is that many countries are facing higher tariffs in the United States, including China, which will increase exports to India, jeopardizing domestic industries, the official said.

According to an internal government memo issued this month, the steel ministry is concerned about displaced exports arriving in India and said the government will take "active trade remedial measures" to protect the domestic industry from "any unfair trade practices."