NEW DELHI: US president Donald Trump on Monday raised the tariff on steel and aluminium to 25% as was hinted at by him to the media a day before.
The White House in a press note on Monday said that president Trump is taking action to protect America’s critical steel and aluminum industries, which have been harmed by unfair trade practices and global excess capacity. “President Trump is reinstating the full 25% tariff on steel imports and increasing tariffs on aluminum imports to 25%,” said that note.
While the tariff has been raised for countries such as Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, the European Union, Ukraine, and the United Kingdom, Indian steel industry fear the action would impact them as cheaper steel may be diverted to India.
Indian manufacturers have said that the latest tariff is expected to slash steel exports to the US by 85%, creating a massive surplus that will likely flood India—one of the few major markets without trade restrictions presently.
In a statement issued on Monday, Naveen Jindal, president of the Indian Steel Association, with the US shutting its doors to global steel, the surplus will inevitably be redirected to India, threatening our domestic industry with market distortions, price crashes, and unfair competition.
A representative of a domestic steel manufacturer told this newspaper that Indian government must bring in more restrictions to curb dumping of cheap steel in India. He even advocated for the end of free trade agreements with countries like Japan and South Korea, who could possibly flood Indian market with cheaper steel.
India exports over $3 billion worth of iron, steel, and other steel products to the US and around $1 billion worth of aluminium. Though India is not one of the top 10 steel exporters to the US, it is a major exporter of aluminium.
Govt must take measures to curb dumping of steel
A representative of a domestic steel manufacturer told this newspaper that Indian government must bring in more restrictions to curb dumping of cheap steel in India. He even advocated for the end of free trade agreements with countries like Japan and South Korea