As former US President Donald Trump imposes 50 per cent tariffs on steel and aluminium from 4 June, New Delhi should leverage ongoing FTA talks rather than escalate trade tensions, advises the Global Trade Research Initiative (GTRI).

US Commerce Secretary Howard Lutnick expressed optimism about an impending trade agreement between the United States and India, aiming to avert potential tariffs threatened by President Trump. Lutnick highlighted concerns regarding India's tariff practices and its military procurement from Russia,

India will seek to the settle the issue bilaterally as part of the ongoing trade talks, rather than pursue it in the WTO.

The Trump administration has asked its trade partners to submit their best offers by Wednesday, in order to finalise deals before July 8. On April 9, President Donald Trump paused his sweeping "Liberation Day" tariffs for 90 days after a market backlash.

The U.S. Court of International Trade and others argue the authority to impose tariffs lies with Congress, rendering the tariffs imposed by President Donald Trump on April 2 illegal.

GTRI advises India to address Trump's new steel and aluminium tariffs within the ongoing FTA talks with the US. This approach aims to persuade the US

India and the US are actively working on a bilateral trade agreement targeting a doubling of trade to USD 500 billion by 2030. While Trump has proposed increasing tariffs on steel and aluminium, India seeks resolutions through negotiations.

Wells Fargo's Christopher Harvey thinks a 10% tariff could be split evenly between importers, corporations, and consumers.