US Tariffs Could Disrupt Global Trade, Increase India’s Steel Import Vulnerability: SAIL Chairman
When asked about the potential impact of the tariffs on India's steel exports to the US, the chairman stated that it is unlikely to have a significant effect
The introduction of higher tariffs by the US could disrupt global trade flows, potentially making India more susceptible to increased steel imports, said SAIL Chairman Amarendu Prakash on Wednesday.
The Trump administration has proposed a 25 per cent tariff on all steel and aluminum imports into the US and announced reciprocal tariffs on all its trading partners, including India, effective from April 2.
Commenting on the potential impact of these tariffs, Prakash noted that they could alter established trade patterns. Traditionally, steel exports have flowed from Asian countries to the US and Europe, with some shipments from Europe to the US as well. However, once reciprocal tariffs are implemented, these exports are likely to become economically unviable, Prakash explained, according to a PTI report.
Floating Trade
"That will mean Asian countries -- China, South Korea, 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," the chairman said.
When asked about the potential impact of the tariffs on India's steel exports to the US, the chairman stated that it is unlikely to have a significant effect, as the volume of such exports is not substantial.
"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, states the report.
Also Read: Trump's Tariff Plan Spurs Shipping Uncertainty, Experts Warn Global Trade at Risk
Implementation Of Safeguard Duty
Regarding the demand to restrict cheap imports in the country, Prakash stressed the urgency of implementing a safeguard duty to protect the domestic steel industry.
Last month, the Directorate General of Trade Remedies (DGTR), the investigative arm of the commerce ministry, recommended a 12 per cent provisional safeguard duty for 200 days on certain steel products to shield domestic producers from the surge in imports. The final decision on this matter will be made by the finance ministry.
On the DGTR’s ongoing investigations related to metallurgical coke, Prakash noted that quantitative restrictions (QR) are already in place. He added that such curbs would not negatively impact steel producers.
Top Headlines
