ANI
02 Jun 2025, 15:46 GMT+10
New Delhi [India], June 2 (ANI): While facing a challenge from the United States regarding tariffs on steel and aluminium, the Global Trade Research Initiative (GTRI) suggests that India should opt for a more 'pragmatic route' by using the ongoing bilateral Free Trade Agreement (FTA) as a tool for negotiations with the US.
GTRI believes that India could secure a mutually beneficial negotiated solution by pressing the US to eliminate or significantly reduce the Section 232 tariffs on steel and aluminium as a key component of the FTA deal.
'This approach would allow India to use its negotiating leverage to gain meaningful market access benefits without escalating the dispute through trade or legal fights at this stage, the release by GTRI said.
However, this strategy is particularly relevant as India and the US are currently deeply engaged in FTA talks.
Last week, President Trump announced a 50 per cent duty on imports to the US for steel and aluminium from June 4, 2025.
Earlier US has rejected India's petition at the World Trade Organisation (WTO) on May 23, claiming that US steel and aluminium tariffs are not safeguard measures under WTO rules.
The U.S. argues these tariffs are imposed under Section 232 for national security reasons, falling under Article XXI of GATT, not the Safeguards Agreement. This makes India's proposed suspension of concessions under the Safeguards Agreement legally invalid.
Following the US's rejection of India's proposed retaliation on both legal and procedural grounds, the country has other options as well.
One of them being, imposition of retaliatory tariffs on the US, which will 'send a clear message, but it also brings the risk of U.S. countermeasures and possible legal battles', GTRI said. 'Other countries like the EU, Canada, and China have done this against the U.S. Section 232 tariffs as a political signal of resistance.'
Other options include pursuing a WTO dispute challenging the US's invocation of the national security exception, although this carries risks due to the US's past disregard for WTO rulings on such grounds and the non-functional Appellate Body. (ANI)
Get a daily dose of Illinois Intelligencer news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Illinois Intelligencer.
More InformationSYDNEY, NSW, Australia - A major international operation targeting online sextortion has resulted in the arrest of 22 suspects in Nigeria,...
New Delhi [India], June 2 (ANI): While facing a challenge from the United States regarding tariffs on steel and aluminium, the Global...
New Delhi [India], June 2 (ANI): External Affairs Minister S Jaishankar, on Monday, called on the visiting President Santiago Pena...
New Delhi [India], June 2 (ANI): The impact of Artificial Intelligence (AI) on the job market is expected to fall on entry-level white-collar...
Tokyo [Japan], June 2 (ANI): The leadership of the Central Tibetan Administration (CTA), which includes Speaker Khenpo Sonam Tenphel,...
Washington DC [US], June 2 (ANI): Six people sustained injuries in Boulder, Colorado in the United States after a man attacked and...
SEOUL, South Korea: On May 30, South Korea's leading left-wing presidential candidate, Lee Jae-myung, said he wants to change the Constitution...
WASHINGTON, D.C.: U.S. federal officials are looking into an attempt by someone who pretended to be White House Chief of Staff Susie...
SEATTLE, Washington: Amazon has struck a significant deal with The New York Times to license its journalism for use in AI tools like...
SEOUL, South Korea: Lee Jae-myung, a liberal South Korean politician, is leading in the polls ahead of the June 3 snap presidential...
GENEVA, Switzerland: A massive glacier collapse in the Swiss Alps sent a torrent of ice, mud, and rock crashing into the evacuated...
ANKARA, Turkey: Turkish President Recep Tayyip Erdogan said this week that he has appointed a group of legal experts to begin drafting...