Engineering Export Promotion Council (EEPC) Chairman Ravi Sehgal said protectionist measures taken by countries like the US would provoke other regions such as Europe and China into taking retaliatory steps, which would further dent exports from India.
India's exports of steel items to the US are estimated at about USD 500 million per year. The country's share in prime steel imports in the US is 1.28 per cent, while in aluminium it is 1.12 per cent.
"Certainly the move by the US would impact India's engineering exports, maybe not directly but indirectly. The price movement of products would become volatile now," Sehgal told PTI.
It looks like the world is going back to the era of Cold War, raising trade barriers and protectionist steps, he added.
US President Donald Trump has imposed heavy tariffs on imported steel and aluminium which he said were necessary to boost the American industry suffering from "unfair" business practices. The move has sparked fears of a global trade war.
Trump signed two proclamations that levied a 25 per cent tariff on steel and 10 per cent tariff on aluminium imported from all countries except Canada and Mexico. The contentious tariffs will come into effect in 15 days.
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