India’s Steel Industry Remains Resilient Amid U.S. Tariffs
India’s steel industry is not expected to be majorly impacted by U.S. tariffs, according to Sandeep Poundrik. Exports to the U.S. are low, totaling under 100,000 metric tons. The European Union has announced retaliatory measures, emphasizing protection of their industries amid changing trade policies. However, competition from redirected cheaper steel imports may increase.
India’s steel industry is expected to remain largely unaffected by the recent U.S. tariffs on steel and aluminum imports, according to steel secretary Sandeep Poundrik. During an event in New Delhi, Poundrik remarked that India’s exports to the U.S. are relatively minimal, totaling less than 100,000 metric tons, as reported by Reuters. This assertion comes in response to the tariff hike imposed by U.S. President Donald Trump, which increased duties on aluminum imports from 10 percent to 25 percent. The tariffs are part of a broader strategy aimed at favoring American manufacturing and encouraging foreign companies to invest domestically.
Other global economies are responding with their own countermeasures in light of the U.S. tariffs. The European Union recently announced retaliatory measures on approximately €26 billion ($28.3 billion) worth of U.S. goods, condemning Trump’s actions as “unjust.” European Commission President Ursula von der Leyen emphasized the EU’s willingness to negotiate, yet affirmed their commitment to protecting their industries through decisive action.
In a significant policy shift, President Trump has eliminated all exemptions from the 2018 tariffs, thereby imposing them on key trading partners including Canada, Mexico, China, the EU, Brazil, and South Korea. This move is set to foster tensions as additional tariffs are anticipated to be implemented. Concerns have been raised in India regarding the potential surplus of steel in global markets, which might adversely affect local producers already grappling with increasing imports. However, Poundrik’s comments suggest that the Indian steel sector will not face serious repercussions. Although direct impacts from U.S. tariffs may be limited, there is a possibility of intensified competition due to the influx of cheaper steel from redirected European markets.
In summary, India’s steel secretary has indicated that the new U.S. tariffs on steel and aluminum will not significantly impact India’s steel exports, given the country’s minimal trade volume with the U.S. Meanwhile, global responses are being observed, especially from the European Union, which has initiated countermeasures against American goods. Trump’s policy changes, including the removal of exemptions, signal a shift in global trade dynamics, although the Indian steel industry may not be critically affected.
Original Source: www.business-standard.com
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