On June 22, 2023, the United States Trade Representative (USTR) announced that the United States and India reached an agreement to terminate ongoing  disputes at the World Trade Organization (WTO). Additionally, India agreed to remove retaliatory tariffs implemented against certain U.S. products in response to the U.S.’s institution of Section 232 tariffs on steel and aluminum in 2018.

The six (6) World Trade Organization disputes to be terminated are:

• United States – Countervailing Measures on Certain Hot-Rolled Carbon Steel Flat Products from India (DS436);
• India – Certain Measures Relating to Solar Cells and Solar Modules (DS456);
• United States – Certain Measures Relating to the Renewable Energy Sector (DS510);
• India – Export Related Measures (DS541);
• United States – Certain Measures on Steel and Aluminum Products (DS547); and
• India – Additional Duties on Certain Products from the United States (DS585).

However, while the countries have agreed to terminate the outstanding disputes at the WTO, the U.S. did not take the next step of exempting India from Section 232 tariffs. Indeed, the statement issued by the USTR highlighted the success of the negotiations while explicitly stating that, “[t]he resolution maintains the integrity of the U.S. 232 measures.” According to the terms of the resolution, the U.S. will continue to monitor the efficacy of the Section 232 tariffs against India and will continue to process exemptions to the tariffs consistent with past practices.

Husch Blackwell continues to monitor the challenge against the Section 232 derivative product duties and will provide updates as more information becomes available. If your company is interested in pursuing an appeal or has any questions regarding the Section 232 duties, please contact a member of our International Trade and Supply Chain team.