US Tariffs on Steel and Aluminium Imports
American President's decision to impose a 25% tariff on steel and aluminium imports could significantly impact India's exports of these commodities to the United States.
Reciprocal Tariffs
- US President plans to introduce "reciprocal tariffs" to match the tariffs imposed by other countries on US products.
India's Response
New Delhi is evaluating potential countermeasures, including retaliation.
- In 2018, India imposed retaliatory tariffs after the US implemented a 25% tariff on steel and a 10% tariff on aluminium, citing "national security" concerns.
- Currently, the additional tariffs may not significantly affect India due to the level playing field they create with other nations.
Impact on Indian Steel Producers
- Indian producers may face increased challenges exporting their products due to heightened competition and oversupply in global markets.
- High imports into India have already affected domestic steel prices and earnings.
Concerns and Recommendations
Naveen Jindal, president of the Indian Steel Association, expressed concerns about the potential 85% reduction in steel exports to the US.
- The situation could worsen due to longstanding anti-dumping duties (ADD) and countervailing duties (CVD).
- Jindal urged diplomatic action to remove these duties and secure exemptions from restrictive measures.
Statistics
- US's primary steel imports increased from $31.1 billion in 2018 to $33 billion in 2024, with India's exports being $450 million.
- Aluminium imports rose from $24.2 billion in 2018 to $28.3 billion in 2024, with India's exports at $820 million.
Global Reactions
- Major US steel exporters like China, South Korea, Japan, and the EU might respond with countermeasures.
- China's potential retaliation could include tariffs on American agricultural and industrial goods, complicating US-China trade relations.
While the US steel and aluminium industries may benefit in the short term, global trade tensions are likely to increase.
