The imposition of higher tariffs by the US may change global "trade flows", increasing the chances of India becoming more vulnerable to steel imports, Amarendu Prakash, chairman of Indian state-run steel producer SAIL, said on Wednesday, April 3.
Commenting on the US tariff measures, Mr. Prakash said that it may change trade flows as traditionally steel has been exported from Asian countries to the US and Europe. Some steel was also being exported to the US from Europe. Once the reciprocal tariffs take effect, such exports would become unviable, he said.
“That will mean Asian countries - China, South Korea and Japan - that are exporting to Europe, that steel becomes free and will be floating around in the world. This floating trade might come to India," he said.
On whether the tariff will impact India's exports of steel to the US, the SAIL chairman said it will not affect them much as the outbound shipments of the commodity are not in large quantity.
"That is not a big challenge. The critical steel or critical components, those capabilities do not get developed overnight. So, the prices will go up, but the US will continue to import those items which they do not produce. Setting up a manufacturing unit for those things will take time," Prakash said.