Steel Tensions Remain: India–US Trade Pact Unlikely to Lift Tariffs on Metals

As India and the United States move closer to announcing the first phase of a long-anticipated bilateral trade agreement (BTA), a key sticking point appears unresolved—the removal of steep American tariffs on Indian steel and aluminium exports.

According to individuals directly involved in the negotiations, the proposed agreement is not expected to address or roll back the duties imposed by the US earlier this year. Despite accelerated talks aimed at meeting US President Donald Trump’s July 9 deadline for partner nations to offer lower tariffs on American goods, India’s demand for inclusion of steel and aluminium tariff relief has hit a deadlock.

This development signals a partial victory for both sides—while the agreement may offer some market access and tariff reductions on select products, it leaves out some of India’s most pressing trade grievances.

Indian officials had hoped that the US would ease duties that have heavily impacted domestic metal manufacturers and exporters. However, the American side has shown little inclination to reverse the measures, citing domestic industry protection.

Trade experts suggest that the unresolved tariffs could become a long-term irritant in bilateral economic ties, even as both countries publicly aim to deepen cooperation across technology, investment, and supply chain resilience.

As the countdown to the July 9 deadline continues, the India–US BTA may end up being more symbolic than comprehensive, leaving metal trade issues for future negotiations.