FEBRUARY 20259BANGLADESH URGES ADANI TO RESUME FULL POWER SUPPLY AFTER PAYMENT DELAYINDIAN STEELMAKERS TO FACE EXPORT PROBLEMS FOLLOWING TRUMP TARIFFSMoody's Ratings warned on Monday that Indian steel manufacturers will face more significant difficulties exporting their products after former U.S. President Donald Trump announced a 25 percent tariff on all steel and aluminum imports. Hui Ting Sim, assistant vice president at Moody's, noted that Indian steelmakers were already Bangladesh has urged Adani Power to restore full electricity supply from its 1,600-megawatt plant in India after months of reduced transmission due to payment delays and seasonal demand fluctuations. Adani Power, operating under a 25-year contract since 2017, had halved supply to Bangladesh on October 31, citing outstanding dues. The state-run Bangladesh Power Development Board (BPDB) has since been paying $85 million monthly to settle obligations and now seeks full capacity restoration."As per our requirement today, they have planned to synchronise the second unit, but due to the high vibration, it didn't happen," BPDB Chairperson Md. Rezaul Karim told Reuters, highlighting a technical issue preventing an immediate restart. He added, "Right now, we are making a payment of $85 million per month. We are trying to pay more, and our intention is to reduce the overdue. Now there is no big issue with Adani."A contract dispute remains over power pricing, with Adani's tariffs reportedly 55 percent higher than the average cost of Indian electricity supplied to Bangladesh. A Bangladesh court has ordered a review of the agreement, with findings expected this month.Meanwhile, the Adani Group faces separate scrutiny, including a U.S. indictment of founder Gautam Adani in a $265 million bribery case. Despite this, Adani Power maintains it has upheld all contractual indemnity. struggling with declining prices and earnings due to high steel imports into India over the past year. According to data from the Global Trade Research Initiative (GTRI), U.S. steel and aluminum imports have continued to grow despite the ongoing trade war that began in 2018. In 2024, primary steel imports reached $33 billion, up from $31.1 billion in 2018. The top suppliers this year were Canada ($7.7 billion), Brazil ($5 billion), and Mexico ($3.3 billion), while imports from China and India stood at $550 million and $450 million, respectively. Ajay Srivastava, founder of GTRI, suggested that Trump's tariff strategy could be a bargaining tool in trade negotiations, similar to his 2018 approach, which was seen as an aggressive move to pressure trade partners into making concessions. If these new tariffs are implemented, they could trigger fresh trade disputes and potential retaliatory measures from affected nations. Moody's expects the tariffs to benefit U.S. steel manufacturers by increasing demand for domestic steel and driving up prices. On Sunday, Trump confirmed he would announce the new steel and aluminum tariffs on Monday and hinted at introducing "reciprocal tariffs" by midweek, meaning the U.S. would impose import duties on products from countries that levy duties on American goods, according to news reports.
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