'India needs to dodge trade diversion risk due to steel tariff challenges'

Business Standard

2 days ago

India needs to be watchful of any increased risk of trade diversion into the country due to changing global tariffs, top steel industry executives said reacting to the tariff-related announcement by the US.
Major steel players JSW Steel and AMNS India said there is a need to implement necessary trade measures proactively as every country is protecting their industry.
US President Donald Trump on Friday told Pennsylvania steelworkers that he would double the tariff on steel imports to 50 per cent to protect their industry, a dramatic hike that could further increase prices for a metal used to make housing, autos and other goods.
In a post later on his Truth Social platform, he said aluminum tariffs would also be doubled to 50 per cent, and both tariff hikes would go into effect Wednesday.
"We need to implement necessary trade measures proactively and in time," JSW Steel Joint MD and CEO Jayant Acharya told PTI.
Sharing his views, the industry leader said there is likely to be increased risk of trade diversion into India due to changing global tariffs. India is vulnerable given its strong domestic demand.
Ranjan Dhar, Director & Vice President, Sales and Marketing, AMNS India said,"We hope more protection will come for domestic industry. Every country is protecting their industry. India should also do that as long as India focuses on protecting its industry from low price imports." The industry need to be watchful on imports, there is no doubt about that, he said.
Earlier, Tata Steel CEO T V Narendran had said not imposing the protection measures for a prolonged period of time can impact the industry's investment plans, and impact on cash flows can adversely impact capex decisions.
In FY25, steel imports rose 9.2 per cent to 10.5 million tonne, while exports declined sharply by 27 per cent to 6.3 million tonne, resulting in India remaining a net importer for the second year in a row.
The government introduced a 12 per cent provisional safeguard duty on flat products from April 21, 2025, to help ensure a level playing field for local producers.
JSW Steel and AMNS India are among top 5 steel producing companies in India with an annual production capacity of around 35 million tonne (MT), and 9 MT, respectively.
Tata Steel recently completed the phase II expansion project of 5 MT at Kalinganagar in Odisha, taking its overall capacity to 26.1 million tonne in the country.
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