Both parties raced against the time of dusting the agreement before the 9-red date of President Donald Trump to offer lower tariffs to American goods.
Obligations – increased at the beginning of this year – are ready to remain in force even after the agreement is revealed, the above -mentioned people told on condition of anonymity.
“Given that the formal political green signal expects Donald Trump to approval the trade conditions by an American sales representative, long-term obligations for exporting Indian metal-50% for steel and 50% on aluminum-in this round of negotiations in this round,” said the first.
Focused on incremental progress
The Indian negotiating team led by the Ministry of Commerce Rajesh Agrawal returned to Nový Delhi on Friday after a series of intensive discussions in Washington. The team focused on achieving incremental progress in priorities, such as market access to Indian textiles, pharmaceuticals and services, while allocating controversial problems such as metals and cars for future rounds.
According to the other person, tariffs are part of a wider global regime.
“Each country faces similar duties that have been selected from steel and aluminum. India has also imposed security obligations. These problems were discussed, but there is no interim relief on this queue,” this person said.
According to this person, both parties can negotiate these tariffs in the future round.
The Trump administration originally set 25% on steel tariffs and 10% for aluminum in 2018, referring to concerns about national security under section 232 of US trade law. On 12 March 2025, Trump removed all exceptions specific to the country and increased the aluminum tariff to 25%. Less than three months later, the US continued to double these tariffs to 50% for both metals, with revised rates from 4 June.
Mint announced June 3 that India would seek removal of American steel tariffs through business interviews rather than to decide on immediate retaliation. On July 5, she also stated that the first trancho of India-US BTA is now on Trump’s table for final approval after the US sales representative Jamieson Greer was climbed.
Part of a wider trip
These measures are part of the wider mutual increase in US tariffs according to the second term of Trump, including 25% of the tariff to imported cars that came into force on April 3. The White House command said that the goal is to “more effectively face foreign countries that continue to interpret cheap price, excess steel and aluminum in the US.”
Business analysts point out that while India has a limited US exposition in steel and aluminum compared to other sectors, the continuation of high duties reflects a protectionist attitude in Washington and leaves little space for close relief.
“This indicates that the US prefers domestic industrial recovery and employment over trade concessions, especially in politically sensitive sectors such as metals,” said Abhash Kumar, business exports and economic assistant at Delhi University.
Unlike the agreement, Trump’s administration affected Great Britain. According to their existing bilateral trade framework, 25% of the tariff is facing the import of metals from the UK, while both sides are working on a resolution involving quotas and modified duties.
Indian industrial groups hoped that BTA would offer at least partial relief in these obligations, especially because high tariffs interfere with the price competitiveness of Indian exporters on the US market.
“While metals are not among the best Indian exports to the US, the principle of reciprocity and fair treatment matters. Our manufacturers compete against suppliers from countries with more favorable conditions,” said Arun Kumar Garodia, former chairman of the export promotion (EEPC) and light engineering and trading directors.
Attacked legitimacy
Meanwhile, India questioned the legitimacy of these tariffs in the World Trade Organization (WTO) and claimed that they were measures to protect – fixed restrictions permitted according to the WTO rules for the protection of domestic industries from import voltages. When notifying WTO in May India, she told her intention to suspend concessions on the basis of an agreement on warranty in response to the American event.
Washington, however, rejected India’s position. In communication, which is distributed to WTO 23 May, Washington repeated that tariffs were deposited according to Section 232 for national security reasons and not as protection of measures under the WTO provisions.
Experts believe that WTO management may not bring quick results. “The Indian statutory reverse section in the WTO is important for maintaining multilateral discipline, but realistically, it takes time to resolve the disputes and immediately does not help exporters,” said Ajay Srivastava, a former Indian business service and co -founder of Global Business Research (GTRI).
Questions sent to the Ministry of Commerce remained unanswered during the press.
According to the GTRi report in FY2025 India, the US exported US $ 4.56 billion. This included $ 587.5 million in iron and steel, $ 3.1 billion in iron or steel articles, and $ 860 million in aluminum and related articles. These products are now facing steep higher tariffs, which could be difficult for Indian exporters to remain competitive.
(Tagstotranslate) indie-us bilateral agreement
