India sees a “minor impact” from the Trump Administration’s proposed steel tariff hikes to 50 percent, while the domestic industry has cautioned against risks from trade diversion due to changing global tariff regimes, SteelOrbis has learned from various statements issued by the ministry of steel and industry representatives on Tuesday, June 2.
“We are not exporting to the US in a significant way, so the impact on India will be minor,” minister of steel H D Kumarswamy said.
Last week, US President Trump announced that he intends to raise tariffs on steel and aluminium products from 25 percent to 50 percent.
“If we are talking about a direct impact, then in 2024-25 India exported 165,000 mt of finished steel to the US, which is approx. 0.1 percent of India’s total (finished steel) production. Due to its less exposure to the US, the direct impact of US tariffs on India’s steel sector is expected to be minimal,” the minister said.
“Then there is the indirect effect. So, when steel-exporting nations face restrictions in the US, they may try to redirect their surplus steel to other regions, leading to increased competition and price pressures in markets. This may have some indirect impact on steel prices,” he said.
“We are keeping a watch on the situation and appropriate action will be taken to protect domestic steelmakers,” he added.
Major domestic steel companies like JSW Steel Limited and ArcelorMittal Nippon Steel Limited (AMNS India) have said there is a need to implement necessary trade measures proactively as every country is protecting their industry.
"We need to implement necessary trade measures proactively and in time,” JSW Steel Limited CEO Jayant Acharya said.
“We hope more protection will come for domestic industry. Every country is protecting their industry. India should also do that as long as India focuses on protecting its industry from low price imports,” AMNS India, director, sales and marketing, Ranjan Dhar, said in a statement.
Tata Steel Limited for its part warned that not imposing adequate protection for domestic companies would risk the industry’s capital expenditure plans as the impact on cash flows impacts such capex.