Protectionist measures will hit Indo-US trade: Advocacy groups

NEW DELHI: Indo-American business advocacy groups said tariffs on steel and aluminium imposed by the US will negatively impact bilateral trade and cautioned the protectionist measures by the two countries could be injurious to bilateral trade.

The US-India Strategic Partnership Forum (USISPF) has said the US revoking preferential benefits to Indian exports would be detrimental to trade while the US-India Business Council (USIBC) has backed acceptable compromises for issues such as agricultural tariffs, medical device pricing, data localization and immigration.

“We do not support the tariffs globally and there we don’t support them on India either,” said Amy Hariani, vice president, USIBC under the US Chamber of Commerce. The US Chamber and USIBC have taken a position that aluminium and steel tariffs are not good for the global economy and would create a detrimental impact on US companies that rely on imports of Indian steel.


Officials from USISPF have been meeting bureaucrats from the two sides every week after the US imposed these duties, challenged India's export promotion programmes, started review of India's GSP eligibility and began examining the fixation of prices of American pharmaceuticals and medical devices.

The two countries have dragged each other to the World Trade Organization (WTO).

“Even before the US announced the additional tariffs on steel and aluminum, India had increased tariffs on 46 of its products in its budget. Both countries are increasing their efforts to encourage domestic manufacturing,” said Mukesh Aghi, president and CEO of USISPF.

While the US has launched dispute consultations on India’s export subsidies claiming them to harm American workers, Delhi has moved WTO against the US’ import tariffs on steel and aluminium, citing discrimination and introduction of restrictions against its imports. Regarding pharmaceuticals, Aghi said the US government has made India’s price controls on stents its number one trade priority for the US-India economic relationship.