India Responds Strategically to US Tariffs on Steel and Aluminium

India is unlikely to retaliate against US tariffs on steel and aluminum, focusing instead on negotiations for a trade deal. Previous retaliatory actions differ in context, as current tariffs are non-targeted. The primary aim of India’s safeguard duty is to reduce Chinese imports.

India appears unlikely to implement retaliatory measures against the recent US tariffs on steel and aluminum. The United States has imposed steeper tariffs; however, these are not aimed specifically at India. Instead, New Delhi is prioritizing ongoing discussions for a trade agreement with the US, focusing on achieving a mutually advantageous deal.

Previously, under former President Trump, India responded to US tariffs by increasing duties on American products like almonds and apples. However, the current tariff situation differs as India’s response may be tempered by its trade priorities. Furthermore, India’s safeguard duty is primarily aimed at mitigating the influx of Chinese imports, rather than retaliating against the US.

As India navigates the complexities of international trade, the focus remains on strengthening bilateral ties with the United States. Engaging in constructive negotiations may yield a more favorable outcome for India’s economic interests rather than responding with new tariffs.

In summary, India’s response to the US tariffs on steel and aluminum indicates a measured approach, prioritizing trade discussions over retaliation. The focus remains on fostering a beneficial trade agreement with the US while addressing concerns regarding Chinese imports through safeguard duties. This strategy may enhance diplomatic relationships and economic benefits for India.

Original Source: www.moneycontrol.com