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Time of India
an hour ago
- Business
- Time of India
FIEO worried over US tariff hikes on steel, aluminium
New Delhi: The Federation of Indian Export Organisations ( FIEO ) Saturday raised concerns about potential disruption to India's steel and aluminium exports to the US after President Donald Trump's announcement of a plan to double import tariffs on steel and aluminium to 50% from 25%. They particularly fear that the exports of value-added and finished steel products and auto-components, stainless steel pipes, and structural steel components could be hurt. This potential increase comes under Section 232 of the US Trade Expansion Act of 1962, a law that allows the president to impose tariffs or other trade restrictions if imports are deemed a threat to national security. "These products are part of India's growing engineering exports, and higher duties could erode our price competitiveness in the American market," said SC Ralhan, president, FIEO. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like A brain tumor threatens his life. Please save him. Donate For Health Donate Now Undo India exported approximately $6.2 billion worth of steel and finished steel products to the US in FY25 including a wide range of engineered and fabricated steel components and about $0.86 billion of aluminium and its products. The US is among the top destinations for Indian steel manufacturers, who have been gradually increasing market share through high-quality production and competitive pricing. Exporters said that though the decision stems from domestic policy considerations in the US, such sharp increases in tariffs send discouraging signals to global trade and manufacturing supply chains. Live Events India and the US are negotiating a Bilateral Trade Agreement and exporters said that the move will complicate the talks. "It's unfortunate that while BTA negotiations are going on, such unilateral tariff increases should be done. It only makes the work of the negotiators much more difficult and complicated. This will definitely impact the engineering exports, which are about $5 billion under this head," Pankaj Chadha, chairman EEPC India. Chadha added that since the UK has been given exemption from Section 232, the same exemption should also be given with TRQ restrictions to India. "We urge the government to take up the issue at the bilateral level to ensure that Indian exporters are not unfairly 25% additional duty will be a huge burden, which is difficult to be absorbed by the exporter/importer," Ralhan said. On March 8, 2018, the US promulgated safeguard measures on certain steel and aluminium articles by imposing 25% and 10% ad valorem tariffs respectively on such products with effect from March 23, 2018. On February 10, 2025, it revised the safeguard measures on imports of steel and aluminium articles, effective from March 12. New Delhi said that the US failed to notify the WTO Committee about a decision to apply safeguard measures and as an affected member with significant export interest, it has requested consultations with Washington and proposed retaliation against the measure.
The Hindu
3 hours ago
- Business
- The Hindu
Indian steel, aluminium exports to take a hit with as Trump mulls doubling tariff to 50%
India's exports of steel and aluminium and their products are expected to take $1 billion hit with the proposed fresh tariff hikes by the U.S.. The proposed tariff is double the current 25% tariff under Section 232 of the Trade Expansion Act. Pankaj Chadha, chairman of EEPC India, told The Hindu that annual exports of steel, aluminium and products are worth nearly $5 billion. 'We have barely settled down after the March announcement of sectoral tariff. How can we do business with such uncertainty in tariffs. The US sources castings, fasteners, holdings, etc. We (Indian exporters) need to diversify to other markets,' he said. The EEPC India will pursue with the Indian government to get exemption from Section 232, similar to the exemption the U.S. has given to the U.K. According to the GTRI, the U.S. steel prices are already high, at around $984 per tonne compared with European prices at $690 and Chinese prices at $392. The doubling of tariffs is expected to push U.S. prices to about $1,180, hitting the U.S. domestic industries in sectors such as automobiles, construction, and manufacturing. For India, the consequences are direct. In FY 2025, India exported $4.56 billion worth of iron, steel, and aluminium products to the U.S., with key categories including $587.5 million in iron and steel, $3.1 billion in articles of iron or steel, and $860 million in aluminium and related articles. India has issued a formal notice at the World Trade Organization signalling its intention to impose retaliatory tariffs on U.S. goods in response to the earlier steel tariffs. With the US now planning to double the tariffs, it remains to be seen whether India will carry out the retaliation, by increasing tariffs on certain U.S. exports within a month. India imports nearly $ 2 billion worth iron, steel, aluminium and their goods from the U.S., said the GTRI. S C Ralhan, president of the Federation of Indian Export Organisations, said in a press release that the proposed tariff will have significant bearing especially on semi-finished and finished categories such as stainless steel pipes, structural steel components, and automotive steel parts. These products are part of India's growing engineering exports, and higher duties could erode India's price competitiveness in the U.S. market. Such sharp increases in tariffs send discouraging signals to global trade and manufacturing supply chains. 'We urge the Government to take up the issue at the bilateral level to ensure that Indian exporters are not unfairly disadvantaged as 25% additional duty will be a huge burden, which is difficult to be absorbed by the exporter/importer.'
United News of India
4 hours ago
- Business
- United News of India
Proposed 50 pc hike in US steel, aluminum import tariffs to be significant bearing on India's steel exports: FIEO Prez
Hyderabad, May 31 (UNI) Federation of Indian Export Organisations (FIEO) on Saturday expressed concern over the recent announcement by the US President to double import tariffs on steel and aluminium from 25 to 50 percent, citing potential disruption to India's steel and aluminium exports, particularly in value-added and finished steel products and auto components. While reacting over the development, FIEO President S C Ralhan stated in a statement that the proposed increase in US steel and aluminum import tariffs will have a significant bearing on India's steel exports, especially in semi-finished and finished categories like stainless steel pipes, structural steel components and automotive steel parts. These products are part of India's growing engineering exports, and higher duties could erode our price competitiveness in the American market. India exported around US 6.2 billion Dollar worth of steel and finished steel products to the US in FY2024-25 including a widerange of engineered and fabricated steel components and about USD 0.86 billion of aluminum and its products. The US is among the top destinations for Indian steel manufacturers, who have been gradually increasing marketshare through high-quality production and competitive pricing. The FIEO President said, "while we understand that the decision stems from domestic policy considerations in the US, such sharp increases in tariffs send discouraging signals to global trade and manufacturing supply chains. "We urge the government to take up the issue at the bilateral level to ensure that Indian exporters are not unfairly disadvantaged more so far the shipments, as 25 percent additional duty will be a huge burden, which is difficult to be absorbed by the exporter / importer," he said. The FIEO Chief also emphasized the need for Indian exporters to diversify their markets and invest in higher-grade value-added products to mitigate the impact of such protectionist measures. UNI KNR SS
Hans India
4 days ago
- Business
- Hans India
Exports likely to touch $1 trn mark in FY26
New Delhi The Federation of Indian Export Organisations (FIEO) on Tuesday said the country is projected to reach the export figure of $1 trillion by the end of this fiscal (FY26). This will constitute merchandise exports at $525-535 billion -- a growth of about 12 per cent from last fiscal -- and services exports at $465-475 billion, a growth of nearly 20 per cent. India's export sector achieved a significant milestone in the fiscal year 2024–25, with total exports reaching a record $824.9 billion, marking a 6.01 per cent increase from the previous year's $778.1 exports surged 13.6 per cent to $387.5 billion in FY25, driven by strong performances in IT, business, financial and travel-related exports reached $437.4 billion, with non-petroleum goods exports hitting a record $374.1 billion, up 6 per cent from the previous year. SC Ralhan, President, FIEO, said that to build upon this momentum and achieve sustained growth in both goods and services exports, certain strategies are recommended. 'Expanding into emerging markets and strengthening trade relations with existing partners can mitigate risks associated with over-reliance on specific regions. Also, shifting focus from raw materials to value-added products can increase export earnings and reduce vulnerability to price fluctuations in global commodity markets,' the FIEO recommended. Negotiating and implementing Free Trade Agreements (FTAs) with key partners can facilitate easier market access and reduce trade barriers, while investing in quality infrastructure, reducing logistics costs, and ensuring compliance with international standards will improve the competitiveness of Indian exports. According to FIEO, providing SMEs with access to finance, and market information will enable them to participate more effectively in international global trade landscape in 2025 is increasingly characterised by a resurgence of protectionist policies, marking a significant shift from the liberalisation trends of previous decades. This protectionism manifests through heightened tariffs, non-tariff barriers (NTBs), and strategic trade measures, impacting global commerce and economic exporters will have to ensure full supply chain traceability—something currently lacking in many traditional sectors like textiles, leather and electronics. 'We request the government to create sector-specific task forces to study DPP requirements and build compliance roadmaps and develop a national framework or digital infrastructure that can help exporters generate DPPs efficiently. The government may also provide assistance or grants to MSMEs to adopt traceability and product lifecycle management systems,' said FIEO.
Time of India
4 days ago
- Business
- Time of India
Trade pacts, Red Sea route resumption to aid India's FY26 exports to $1 trn: FIEO
India anticipates its goods and services exports to hit $1 trillion by fiscal year 2026. This growth is supported by new trade agreements and the resumption of shipments via the Red Sea route. Federation of Indian Export Organisations projects increases in merchandise and service exports. Key sectors driving this growth include electronics, agriculture, and petroleum products. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: India's overall goods and services exports are expected to reach $1 trillion in FY26 aided by more trade agreements with key trade partners coming into force amid Indian export consignments having gradually started moving through the Red Sea route again, Federation of Indian Export Organisations ( FIEO ) said 2024-25, India's exports were $825 billion. FIEO President S C Ralhan said that merchandise exports will increase to $525-535 billion this fiscal from $437 billion, led by electronics, agriculture and petroleum products while services exports are seen rising to $465-475 billion from $387 factor will be the foreign buyers particularly in the US looking beyond China to source their main sectors which can help push the exports include electrical and electronics $60 billion, machinery at $40 billion, chemicals at $40 billion, pharmaceuticals $ 30 billion, petroleum $70 billion and agriculture at $55 billion, among pacts with the US, EU, UK and EFTA will aid the efforts, said FIEO Director General Ajay Sahai, adding that the interim trade deal that exempts India from reciprocal tariffs would offer a big advantage over also said that consignments are gradually going through this important sea route.'It will cut transportation time,' he said, adding that freight rates have stabilised because of a drop in ship demands from gradual movement signals a cautious recovery in shipments after months of disruptions on the route caused by regional tensions. Around 80% of India's merchandise trade with Europe passes through the Red Sea and substantial trade with the US also takes this year, the situation around the Bab-el-Mandeb Strait , a crucial shipping route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, escalated due to attacks by Yemen-based Houthi militants. Due to the attacks, the shippers were taking consignments through the Cape of Good Hope, encircling the African continent, resulting in delays of almost 14-20 days and higher freight and insurance apex trade body said that despite the healthy outlook, some headwinds are expected to come from technical and non-tariff barriers. The latest one facing the industry is the implementation of Digital Product Passport (DPP) that is to be implemented by the EU from January 1, 2026 which aims to digitally record, store, and share information about a product's entire life cycle—from raw materials to manufacturing, usage, recycling, and disposal. It will be mandatory for a wide range of products including electronics, batteries, textiles, and construction materials.
