Evaluating the Ripple Effect: US Reciprocal Tariffs on Steel Industry

US President Donald Trump announced reciprocal tariffs on 60 countries to counter high duties on American goods. India faces a 26% tariff. Steel industry experts warn against trade disruptions and an influx of low-cost imports. Domestic players, including Tata Steel and Jindal Steel, are assessing the impact.

Domestic steel companies are cautiously examining the potential consequences of the US's new reciprocal tariffs, which were recently imposed by the Trump administration on approximately 60 nations. The tariffs, announced to address global duties on American products, reflect an effort to curb the US trade deficit and rejuvenate manufacturing.

India, specifically, will face a 26% tariff, due to high import duties on American goods, according to the US. However, critical sectors like automobiles and auto parts remain unaffected by this order, as they are already subject to Section 232 tariffs. Indian giants, Tata Steel and Jindal Steel, are taking a wait-and-see approach before commenting on the potential impact.

Experts suggest these tariffs could significantly disrupt global trade flows, leading to a surge in low-cost imports into India. This is backed by data indicating potential drops in steel exports to the US and a shift towards increased imports from countries like China and South Korea. Concerns about trade diversion and market shifts linger as the steel industry continues to monitor the evolving trade landscape.

(With inputs from agencies.)