Indian Steel Firms Assess Potential Impact of US Reciprocal Tariffs

Domestic steel manufacturers are assessing the potential effects of reciprocal tariffs initiated by the US government, indicating that it may be too soon to comment on the development.  On Wednesday, US President Donald Trump announced reciprocal tariffs for around 60 countries in a historic move to combat higher tariffs imposed internationally on US products. 

For India, the US has provided 26 percent in reciprocal tariffs, claiming that New Delhi has imposed high tariffs on American goods, as the Trump administration is working to reduce the trade deficit while increasing manufacturing.  However, automobiles and auto parts and steel and aluminum products that were already impacted by 25 percent tariffs initiated in March under Section 232 are not included in the latest measure. 

When asked what Tata Steel thought about the initial tariffs, a company official told PTI, "We are evaluating the situation. It would be premature to comment."

"The tariff has come just yesterday. We will study its impact".

A senior official of Naveen Jindal-owned Jindal Steel and Power Ltd (JSPL) said the company is closely monitoring the impacts of the US announcements.

"We are closely examining the US administration's announcement and will share our comments at an appropriate time," he noted.

Similarly, multiple experts in the steel markets expect that US reciprocal tariffs will disrupt global trade flows, for example affecting alternative markets such as India, with higher steel imports.

"The greater concern lies in the potential trade diversions triggered by such policies. Countries being impacted by the US tariffs may redirect their exports to India, leading to an influx of low-cost imports," ISSDA President Rajamani Krishnamurti said.