Minister says New Delhi has requested Washington to exempt it from tariff hike.Â
The Indian government announced on Monday that it has conducted a study on the impact of import duty hike on steel and aluminum by the United States.
In a written reply to Lok Sabha, the lower house of the Parliament, Minister of State of the Department of Consumer Affairs, Food and Public Distribution C.R. Chaudhary said that New Delhi has also requested Washington to exempt India from the tariff hike.
“India has also requested the US to exempt India from the steel and aluminum tariffs,” Chaudhary was quoted as saying by Press Trust of India (PTI). “India is examining all options to deal with the issue, in case not resolved bilaterally.â€
The government has also informed the Trump administration that the import of steel and aluminum from India didn’t pose a security threat to the American manufacturers.
“The tariffs will definitely affect our exports,†Steel Minister Chaudhary Birender Singh told Reuters last week. “And clearly, as far as the quantum is concerned and the type of steel is concerned, there is no such thing as a security threat to the US.â€
Citing high trade deficit, President Trump imposed 25 percent import tariff on steel and 10 percent on aluminum from several countries including India to protect the domestic producers in March.
Though the United States accounts for only 2 percent of India’s steel exports, the country is concerned about the possibility of the Trump administration imposing similar tariffs on other products.
Trade and Commerce Minister Suresh Prabhu had said that the government would raise the issue in talks with US officials. Several countries have raised concerns over the action by Washington during the informal ministerial meeting of the World Trade Organization hosted by India last month.
The commerce and industry department has held consultations with experts including former officials who have experience in dealing with such issues to explore the possibility of approaching the WTO against the move.
India exported aluminum, iron and steel worth $1.26 billion to the United States in the financial year 2016-17 and $960.58 million in the April-October period of 2017-18. While iron and steel exports were $330.17 million and $207.89 million, respectively, and the export of aluminum articles were $350.15 million and $285.46 million in the same period