India’s Government Warns of Negative Impact of Trump’s Aluminium Tariffs

India’s Government Warns of Negative Impact of Trump’s Aluminium Tariffs

The Indian government warned that the 10-percent tariffs enacted by United States President Donald Trump on all imported aluminium will have a negative impact upon India’s exports to the U.S. market.

Although the Indian government has already approached the Trump administration seeking an exemption from the tariffs, Minister of State for Commerce and Industry C. R. Chaudhary said in a written statement issued to India’s upper house of Parliament last week that the failure to obtain such an exemption is likely to make Indian nonferrous metals significantly less competitive in the American marketplace.

“Though it would be difficult to estimate what would be the quantum of impact on Indian steel and aluminium exports, the Indian exports may become costlier and uncompetitive in the US market especially against other countries who are exempted from levy of tariff by the US.”

He continued by opining that such tariffs do nothing but harm global trade in such goods. The tariffs implemented on aluminium and steel surpass the bound rate committed by the United States to the WTO, he said.

Separately, Chaudhary confirmed that the government has pointed the same out to U.S. authorities, as well as advising the U.S. government that the exports covered by the tariffs are materials that American manufacturers do not produce domestically.

“The government has urged the US to exempt India from these tariffs,” he explained.

Trump’s aluminium tariffs, which are a response to the Commerce Department’s findings in a Section 232 investigation of the national security implications of imported aluminium and steel, passed into effect on March 23. To date the administration has granted temporary exemptions to Argentina, Australia, Brazil, Canada, Mexico, the Republic of Korea, and the European Union. The exemptions expire on May 1, unless the governments of those countries are successful in negotiating a longer-term deal with the Trump government.