Trump's 50% steel, aluminium tariffs seen as ‘minor impact' for India: Steel minister HD Kumaraswamy
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India foresees a "minor impact" from the United States President Donald Trump's proposed elevation of tariffs on steel and aluminium products, according to the federal steel minister's statement on Monday, citing limited export volumes to Washington.
Following Trump's announcement last week regarding his intention to raise tariffs on imported steel and aluminium from 25% to 50%, stock markets witnessed declining values for steelmakers in South Korea and Vietnam, both significant Asian exporters to the United States.
The United States imports approximately one-fourth of its steel requirements, primarily from neighbouring Mexico and Canada, along with strategic allies in Asia and Europe, including Japan, South Korea and Germany, whilst India maintains a relatively lower position in this hierarchy.
"Minor impact will be there... We are not exporting (to the US) in a big way," said steel minister HD Kumaraswamy during a press briefing in New Delhi.
Nevertheless, Fitch ratings agency indicated in March that Indian steel producers and prices could face challenges if nations with higher US export exposure redirect their shipments to India, seeking more accommodating markets for the metal.
Additionally, industry experts have hinted at significant impact on Indian exports.
Engineering exports are expected to encounter major hurdles after Trump announced a 50 per cent duty on imported steel and aluminium from overseas, according to the Engineering Export Promotion Council of India (EEPC).
The US market for Indian engineering exports comprises 25 per cent of steel and aluminium products. The EEPC said, "The annual export of steel, aluminium and their derivatives to the US currently stands at around USD 5 billion."
The organisation highlighted that Indian exporters had already experienced substantial difficulties due to the previously imposed 25 per cent tariff on steel imports.
The Aluminium Association of India (AAI) also expressed apprehension regarding the US' decision, cautioning that a twofold increase in aluminium import duties would adversely affect Indian producers who are currently facing challenges from inexpensive imports.
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Trump's 50 per cent tariff on steel and aluminium imports threatens India's $5 billion export sector, says experts
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