Tata Steel's managing director TV Narendran advocated for safeguard duties on steel imports to protect the domestic steel sector from the indirect effects of increased US hikes.
He mentioned that several countries have started comparable measures regarding steel imports, noting that in the past three days, Vietnam has implemented an anti-dumping duty on Chinese steel imports, and South Korea has also made a similar choice.
Following his inauguration as President of the United States last month, Donald Trump implemented a 25 percent import tax on all steel and aluminum coming into the US and revoked the exemptions previously granted to Canadian and European steel.
Narendran stated that the Indian Steel Association has submitted a request to the government for safeguard duty, and mentioned that it has advocated for a safeguard duty rather than an anti-dumping duty due to the time needed for the latter to be implemented. Also he stated that failing to enforce protective measures for an extended period can impact the industry's investment strategies, adding that margin compression and effects on cash flows can adversely impact capex decisions.
"It's not that India is exporting a lot of steel to the US. But, the steel which used to end up in the US will land somewhere else in the world. That will have an impact on India also indirectly," he explained.
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