The U.S. and India announced recently the resolution of several long-standing trade irritants as both countries continue efforts to diminish their reliance on China. Information on previous developments in the burgeoning bilateral relationship can be found here.
Of particular note, India will end a World Trade Organization case against U.S. Section 232 tariffs and import restrictions on steel and aluminum products and drop the retaliatory tariffs it had imposed on imports of U.S. products such as chickpeas, lentils, almonds, walnuts, apples, boric acid, and diagnostic reagents. The Office of the U.S. Trade Representative said this resolution “maintains the integrity” of the Section 232 tariffs on imports from India, which apparently means they will remain in place.
New Delhi appears to have gotten few tangible gains in return. The U.S. did agree to terminate WTO cases against India’s export subsidies and its domestic content requirements for solar cells and modules, along with a case that challenged the retaliatory tariffs India has now agreed to remove. India reciprocated by agreeing to terminate WTO cases against U.S. countervailing duties on hot-rolled carbon steel flat products and domestic content requirements for renewable energy equipment.
The resolution was announced during a visit to Washington by Prime Minister Narendra Modi where the two sides also agreed to the following trade-related measures.
- undertaking regular efforts to address export controls, explore ways of enhancing high-tech commerce, and facilitate bilateral technology transfer
- hastening bilateral collaboration to secure resilient critical minerals supply chains through enhanced technical assistance and greater commercial cooperation
- reconvening the India-U.S. Trade Policy Forum before the end of the year to address other trade concerns and identify further areas for engagement
- intensifying work on issues related to the eligibility criteria under the Generalized System of Preferences as part of a potential effort to restore India’s GSP eligibility
- initiating official discussions on issues related to government procurement in light of India’s interest in being recognized as a Trade Agreements Act-designated country
Copyright © 2025 Sandler, Travis & Rosenberg, P.A.; WorldTrade Interactive, Inc. All rights reserved.