The US decision to increase import tariffs on steel and aluminium from select countries would affect India to some extent but New Delhi will wait to see its final form before deciding on the action to take, Commerce Secretary Rita Teaotia has said. “I think let us wait and see the manner in which it is finally notified and then we will decide. As you can see Presidential statements are being calibrated. Let us see what is the outcome,” Teaotia said talking to the media on Friday.

US President Donald Trump signed a proclamation on Thursday (Friday early morning in India) imposing a 25 per cent tariff on steel and 10 per cent on aluminium from select countries identified in a US Commerce Department investigation on the sector which included India. Trump, however, said that he would put off a decision on imposing the tariff on Canada and Mexico, which are among the 12 countries mentioned in the report.

While India would not be hit as much as some others such as China or Brazil if tariffs go up, Teaotia said that the matter went beyond the extent to which the country could be hurt. “To some extent of course we will be affected. At the moment the quantum is small. But it is also the principle of it. Let us see,” she said.

Another official pointed out that the US violated the Most Favoured Nation (MFN) clause of the WTO the moment it differentiated between member countries. “How can it justify that exports from certain countries pose a security threat while others don’t. Moreover, linking the decision to impose higher duties on Canada and Mexico to the outcome of the NAFTA (North America Free Trade Agreement) is making a mockery of the security argument,” the official said.

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