Three US lawmakers introduce resolution to end India tariffs

The introduction of a resolution by three US lawmakers to terminate tariffs imposed on India by the previous Trump administration marks a significant development in the evolving economic and strategic relationship between the two nations. This move is not merely about tariffs; it reflects a broader understanding within a section of the US Congress regarding the strategic importance of India and the counterproductive nature of trade barriers between key partners.

**Background Context: The Genesis of Tariffs**

To understand the current resolution, we must first revisit the context in which these tariffs were imposed. In 2018, under the 'America First' policy, the Trump administration levied tariffs of 25% on steel and 10% on aluminum imports from various countries, including India, citing Section 232 of the Trade Expansion Act of 1962. This act allows the US President to impose tariffs on imports deemed a threat to national security. While the stated reason was national security, critics often viewed it as a protectionist measure aimed at boosting domestic industries. India, along with other affected nations, challenged these tariffs at the World Trade Organization (WTO) and subsequently imposed retaliatory tariffs on 28 US products, including almonds, walnuts, and apples, in June 2019. This tit-for-tat measure created significant friction in bilateral trade relations, adding to existing tensions such as the US withdrawal of Generalized System of Preferences (GSP) benefits for India earlier that year.

**What Happened: A Legislative Push for Partnership**

The resolution introduced by US Representatives Ami Bera, Ro Khanna, and Michael Waltz seeks to terminate the 'national emergency' declared by the Trump administration that authorized these tariffs. This is a legislative mechanism to undo an executive action. The lawmakers argue that these tariffs weaken a critical partnership between the US and India, particularly at a time when both nations are seeking to deepen cooperation across various fronts, from defense to technology and supply chain resilience. Their initiative highlights a growing consensus in Washington that a strong, unhindered economic relationship with India is vital for US strategic interests, especially in the Indo-Pacific region.

**Key Stakeholders Involved**

Several key stakeholders are at play. First, the **US Lawmakers** who introduced the resolution are driven by a desire to strengthen the US-India strategic partnership and remove trade impediments. They represent a bipartisan understanding of India's geopolitical significance. Second, the **US Administration** (Biden administration) has generally favored closer ties with India and a more multilateral approach to trade than its predecessor, though it also faces domestic pressures to protect American jobs. Third, the **Indian Government** and **Indian industries** (particularly steel and aluminum sectors) are major beneficiaries if these tariffs are removed, as it would boost exports and improve market access. Fourth, **US importers and manufacturers** who rely on steel and aluminum from India also stand to benefit from lower input costs. Finally, the **World Trade Organization (WTO)** remains a backdrop, as these tariffs and retaliatory measures were challenged under its dispute settlement mechanism.

**Why This Matters for India**

For India, the potential termination of these tariffs holds significant economic and strategic implications. Economically, it would immediately provide greater market access for Indian steel and aluminum products in the US, potentially boosting export revenues and supporting domestic industries. It would also reduce the trade deficit with the US, which has been a point of contention. Politically, the removal of tariffs would signal a renewed commitment from the US to strengthen its economic relationship with India, removing a lingering point of friction. This is crucial for the broader strategic partnership, especially given India's growing role in global supply chains and its importance in the Indo-Pacific strategy, including initiatives like the Quad and the Indo-Pacific Economic Framework (IPEF). A smoother trade relationship can pave the way for deeper collaboration in critical areas like technology transfer, defense cooperation, and investment.

**Historical Context and Broader Themes**

US-India trade relations have a complex history, marked by periods of cooperation and friction. While the US has traditionally been one of India's largest trading partners, trade disputes are not uncommon. The current resolution ties into broader themes of global trade liberalization versus protectionism, the role of national security in trade policy, and the strategic alignment of democratic nations. For India, this move aligns with its 'Act East' policy and its efforts to diversify its trade partnerships and strengthen its position in the global economy. India's Foreign Trade Policy (FTP) aims to boost exports and integrate India into global value chains, making tariff reductions by major partners like the US highly beneficial.

**Future Implications**

If the resolution gains traction and eventually leads to the termination of tariffs, it would be a strong positive signal for US-India bilateral trade. It could set a precedent for resolving other trade disputes and potentially lead to more comprehensive trade agreements or frameworks. It reinforces the idea that economic cooperation is a pillar of strategic partnership. In a world grappling with geopolitical shifts and supply chain vulnerabilities, a robust US-India economic relationship is critical for both nations, offering a democratic alternative for global manufacturing and trade. The outcome of this resolution will also be watched closely by other nations affected by Section 232 tariffs, as it could influence future US trade policy decisions.

**Related Constitutional Articles, Acts, or Policies**

While the primary legal instrument here is the US's Section 232 of the Trade Expansion Act of 1962, which grants the President authority to impose tariffs for national security, India's own trade policies are governed by several frameworks. The **Foreign Trade (Development and Regulation) Act, 1992**, empowers the central government to formulate and implement the Foreign Trade Policy. India's **Foreign Trade Policy (FTP)**, typically announced for a five-year period, outlines strategies and incentives for exports and imports. Furthermore, India's engagement with the **World Trade Organization (WTO)**, particularly its General Agreement on Tariffs and Trade (GATT) rules on non-discrimination (Most Favoured Nation principle under Article I) and dispute settlement mechanism, is highly relevant, as India had challenged the US tariffs at the WTO. The resolution, if successful, would align US trade practices more closely with WTO principles, which generally advocate for reduced trade barriers.