Priyanka
Share
Indian steel producers are evaluating the consequences of the recent tariff announcement by US President Donald Trump. The US has imposed a 26% tariff on steel imports from India, part of a broader move affecting 60 countries. Leading firms like Tata Steel and Jindal Steel and Power Limited (JSPL) have stated that they are currently analyzing the potential impact.
A Tata Steel representative noted the company is studying the situation before making any comments. A senior JSPL official also confirmed they are tracking developments closely and will share their position at the appropriate time.
Experts Warn of Increased Cheap Imports
Industry observers believe the US decision could alter global trade dynamics. According to Rajamani Krishnamurthy, President of the Indian Stainless Steel Development Association (ISSDA), countries affected by the new US tariffs might redirect their steel exports to India. This could lead to a surge in low-cost steel imports into the Indian market, affecting domestic producers.
Redirection of Global Supply Possible
Market intelligence from BigMint indicates that in 2024, the US imported steel primarily from China, the European Union, Japan, Vietnam, and South Korea. Imports from India were relatively limited. Dhruv Goyal, CEO of BigMint, pointed out that these exporting nations might now divert their shipments to India to avoid US tariffs.
Indian Exports to US to Remain Stable
Despite the new tariffs, India’s steel exports to the US may not face major disruption. Steel Authority of India Limited (SAIL) Chairman Amarendu Prakash stated that the US will continue importing steel products it does not manufacture locally, emphasizing that steel capacity cannot be ramped up instantly.
However, Hriday Mohan, an industry analyst, warned that India may experience steel dumping from countries like China, South Korea, and Japan, especially as the European Union’s steel exports to the US become less viable.
