Impact of US Reciprocal Tariffs on Indian Steel Companies Under Evaluation
Indian steel companies are assessing the effects of US reciprocal tariffs of 26% due to high import duties on US goods. Industry representatives, including Tata Steel and Jindal Steel, have indicated that it is premature to comment and are closely monitoring developments. Concerns rise regarding potential increased low-cost imports as affected countries redirect exports to India.
Indian steel companies are currently assessing the implications of reciprocal tariffs imposed by the United States, emphasizing that it is too early to provide definitive commentary. These tariffs, announced by US President Donald Trump, affect approximately 60 countries and seek to counteract global tariffs imposed on American goods, with India facing a 26 percent tariff due to high import duties on US products.
Despite the new tariffs, steel and aluminum products already subjected to a 25 percent Section 232 tariff are not included in this latest measure. Upon inquiry about Tata Steel’s position, a company official stated, “We are evaluating the situation. It would be premature to comment. The tariff has come just yesterday; we will study its impact.”
Similarly, a senior representative from Jindal Steel and Power Ltd (JSPL) indicated that the company is closely monitoring the US government’s announcement and plans to provide feedback when appropriate. Steel industry experts have expressed concerns that these US tariffs may disrupt global trade patterns and impact markets such as India through increased steel imports.
Rajamani Krishnamurti, President of the ISSDA, voiced concern about trade diversions, suggesting that countries affected by US tariffs might redirect their exports to India, leading to a surge of low-cost imports. According to market research firm BigMint, in 2024, India’s steel exports to the US were 0.22 million tonnes, a fraction compared to imports from other countries like South Korea and the EU, now likely to flow to India.
Chairman of SAIL, Amarendu Prakash, remarked that while exporting critical steel components may pose challenges, pricing in the US will remain high as these capabilities take time to develop domestically. Expert Hridaya Mohan cautioned that as EU exports to the US become financially unviable, India might experience an influx of steel dumping from nations such as China, South Korea, and Japan.
In summary, Indian steel companies are exercising caution as they evaluate the potential consequences of the US’s recent reciprocal tariffs. While tariffs may provide some protection for domestic producers, they could also inadvertently lead to increased low-cost steel imports from other nations, thereby challenging the Indian market. The industry’s response is expected to evolve as more detailed analyses take shape.
Original Source: www.business-standard.com
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