The United States is likely to withdraw the stiff tariffs it levied on steel imports this week, reports The New York Times.

The Bush Administration, said the NYT, will argue that the temporary trade protection allowed American steel makers to get themselves in shape to survive against intense global competition.

"The decision to drop the tariffs represents a rare turnabout in policy by the Bush White House, and could give the President's re-election campaign trouble in crucial states like Ohio, West Virginia and Pennsylvania," said the NYT.

Indian steel companies are likely to benefit the most when the US rolls back the safeguard measures it imposed on galvanised and cold rolled steel in March 2002.

Tata Steel, Jindal Iron & Steel and Ispat Industries are among the major exporters of galvanised steel, which attracts an import duty of up to 30 per cent, to the US.

The administration plans to make a case that the tariffs are being lifted because they have accomplished their goal, said the NYT.

The change came after the World Trade Organisation ruled against the United States over the matter last month and authorised retaliatory tariffs by European, Asian and South American nations against American exports, said the NYT.

Although Indian galvanised steel exports were exempt from the US tariffs, they were subject to a cap of 3 per cent of the total galvanised steel imports of the US.

India exported 700,000 tonnes of galvanised products to the US in 2002-03. With the rollback in US import tariffs, steel companies expect a sharp jump in exports in the current financial year.