US President Donald Trump's continuing rhetoric over hiking import duties on steel and aluminium products has had Indian industry worried. Steel makers in the country are gearing up to meet a possibile fallout of Trump's impending decision -- the flooding of the Indian market with Chinese steel. Indian exports of steel and aluminium to the US remain low within the bouquet of total merchandise exports. While Indias steel exports to the US stood at only $330 million, a fraction of total exports to the US, export of finished steel products were $1.23 billion in 2016-17. Total exports of aluminium and aluminium products stood at $350 million. However, senior Commerce Department officials warned that as a result of any US action on steel, the possibility of Chinese steel being dumped in Indian will rise manifold. United States President Donald J Trump had announced that within this week, his administration may slap a 25 per cent import duty on steel imports while inbound aluminium shipments to the United States may attract a 10 per cent import duty hike. ALSO READ: US import tariff likely to have limited impact: Analysts Let's take a quick look at the largest Indian exports to the US in terms of foreign earnings and their current import duties. A majority of exports by the gems and jewellery sector and the pharmaceutical industry continue to be duty-free. The two industries are India's largest exporters.
However, the growth of marine exports to the US has also come under fire from American producers who complain Indian companies are dumping their produce.The US is India's largest export destination with $42.21 billion worth of shipments sent in 2016-17. Trump had earlier reminded his constituents of this fact, arguing that cheap Indian products undercut American ones even while lagging in quality.
|Top Indian exports to US||Import duty||Value ($ bn)|
|Processed non-industrial diamonds||Nil||7.36|
|Gold jewellery set with diamonds||5.80%||1.42|
|Frozen Shrimps and Prawns||Nil||1.36|
|Light Petroleum Oils, preparations||7.00%||1.16|
|What Trump is targeting||Import duty||Value ($ mn)|
|Iron & Steel||Nil||63.00|
|Articles of Iron & Steel||2.30%||238.00|
|Aluminum & articles made from it||6.00%||127.81|
|Source: Commerce and Industry Ministry; Figures are for 2016-17; Total Merchandise exports to US: $42.21 bn, imports from US: $22.30 bn|