India steel chief downplays impact of Trump tariffs on industry exports

Trump administration imposed 25% tariffs on steel and aluminium imports that took effect on Wednesday

India’s steel industry is expected to remain largely unaffected by the latest US tariffs on steel and aluminium, Steel Secretary Sandeep Poundrik reaffirmed on Wednesday, as reported by Reuters.

 

Speaking at an event in New Delhi, Poundrik downplayed concerns, noting that India exports less than 100,000 metric tons of steel to the US – a relatively small volume compared to the country’s total production of around 145 million tonnes last year.

 

“The US tariffs won’t have much impact on India’s steel industry as our domestic market is strong, and only a small quantity is exported to the US,” Poundrik had said at a public event last month. “If out of 145 million tonnes, we are unable to export 95,000 tonnes, it doesn’t really matter.”

   

The statement comes as US President Donald Trump’s latest tariff hike took effect, increasing duties on all steel and aluminium imports to 25 per cent, up from the previous 10 per cent on aluminium. This move is part of Trump’s broader effort to reshape global trade in favour of American manufacturing, aiming to pressure foreign companies to invest in the US.

 

India, the world’s second-largest primary aluminium producer, exported 200,000 metric tons of aluminium to the US in the year ending March 2024, valued at Rs 78.3 billion ($894.4 million), as reported by Reuters.  Read: Donald Trump's 25% tariff on all steel, aluminium imports take effect

 

EU retaliates with counter tariffs

While India claims that it will remain largely unaffected, other major economies are retaliating against the US tariffs.

 

The European Union earlier today announced countermeasures on 26 billion euros ($28.3 billion) worth of US goods, calling Trump’s actions ‘unjust’. European Commission President Ursula von der Leyen stated that while the European Union (EU) remains open to negotiations, it will act decisively to protect its industries.

 

Trump tariffs take effect with no exemptions

Trump has removed all exemptions from the 2018 tariffs, extending them to Canada, Mexico, China, the EU, Brazil, and South Korea, with additional tariffs set to take effect on April 2. These new measures aim to target policies that the Trump administration sees as trade barriers.

 

This raised concerns in India that the tariffs could flood global markets with surplus steel, potentially hurting Indian producers who already face rising imports. However, Poundrik statements indicate that there will be no major consequences for the Indian steel industry.  While India may not be directly impacted by US tariffs, the shift in trade flows could increase competition from cheaper steel imports redirected from markets like the EU.