The Indian stainless steel industry has responded with alarm to the recent US administration tariff announcement, warning against triggering trade disruptions and inundating the domestic market with diverted shipments. The industry is hoping that stainless steel is among the items on the agenda of Prime Minister Narendra Modi's meeting with US President Donald Trump when he travels to the US this week.
Trump has imposed a 25 percent tariff on steel and aluminum imports from several countries, a move that trade analysts say will have long-term and lasting implications for global trade patterns.
The apex industry body of the stainless steel industry, ISSDA, noted the dual role of such tariffs and pointed out they would drastically reduce the market access for Indian manufacturers and escalate international competition. Indian stainless steel companies have been traditional good suppliers of steel to America and have long supplied high-grade, sustainable, and inexpensive steel.
"The imposition of further trade barriers would stifle growth, hamper job creation, and strain bilateral trade relations between two key global economies," said Rajamani Krishnamurti, President, Indian Stainless Steel Development Association (ISSDA).
Jindal Stainless MD Abyudhay Jindal emphasized the need for clarity regarding the tariff’s product scope and interaction with existing duties. Similarly, Synergy Steels MD Anubhav Kathuria pointed out that the move comes when India remains a net importer of finished stainless steel, potentially leading to increased competition and price pressure due to cheap imports.
India’s finished steel exports dropped 28.9 percent to 3.99 million tonnes in April-January FY25, while steel imports surged over 20 percent to 8.29 million tonnes, further complicating the industry’s outlook.
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