US Reciprocal Tariffs Shake Global Trade, Impact Indian Steel Market

US reciprocal tariffs may disrupt global trade, affecting markets like India with increased steel imports due to shifts in trade flows. While US imports from India remain low, potential redirection from countries facing tariffs poses challenges. Experts suggest monitoring trade diversions and exploring opportunities from favorable tariffs.

In a landmark move, President Donald Trump announced reciprocal tariffs on about 60 countries, aiming to fight back against increasing global duties on American products. The US action targets nations imposing high import taxes on its goods, presenting distinct challenges and opportunities for countries like India.

The newly introduced 27 percent reciprocal tariffs on Indian goods comes as the US administration seeks to decrease its trade deficit and encourage domestic manufacturing. Although India's steel exports to the US are minimal, the potential trade diversions could affect domestic producers due to redirected imports from nations hit by US duties.

Experts, including Dhruv Goel of BigMint and Vinayak Vipul of EY Parthenon, caution about significant indirect impacts like global price shifts and strong competition in alternative markets. However, the reciprocal tariff exemptions offer India avenues for trade expansion, particularly with favorable policy support aiding Indian manufacturers.

(With inputs from agencies.)