Moody’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% tariff on all steel and aluminum imports. Hui Ting Sim, assistant vice president at Moody’s, noted that Indian steelmakers were already 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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