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Indian steelmakers’ SOS to govt: intervene against Trump’s tariffs
- The move can create a glut of metal supply in the international market, resulting in more dumping in India, says ISA.
A lobby of Indian steelmakers has urged the Indian government to step in after US President Donald Trump announced plans to levy additional duty on steel and aluminium imported into the country.
The Indian Steel Association (ISA) “urges the Government of India to take urgent diplomatic action to push for the removal of longstanding” anti-dumping duties (ADD) and countervailing duties (CVD) and “secure exemptions from restrictive measures” by the US, said Naveen Jindal, the president of ISA and the chairperson of Jindal Steel & Power Ltd.
Starting Monday, Trump has promised to levy 25% tariffs on the import of steel and aluminium into the US. The move can create a glut of metal supply in the international market, resulting in more dumping in India, indirectly hurting Indian producers, Jindal said.
Also Read | Trump says he will announce 25 per cent steel, aluminum tariffs Monday, more import duties coming
“The Indian Steel Association expresses deep concern over the US decision to impose tariffs on steel imports, a move that will further disrupt global trade and intensify challenges for the steel industry,” Jindal said in a press statement Monday evening in India.
The US is a major steel importer. Despite this, it has historically imposed strict trade restrictions, with over 30 remedial actions in force against Indian steel—some for more than three decades, Jindal said.
To be sure, India’s direct export of steel to the US is negligible. Indian steel shipments of 233,000 tonnes accounted for less than 1% of the US’ steel imports of 24.6 million tonnes over the past 12 months, shows data from the US Department of Commerce. This is due to longstanding ADD and CVD measures imposed by the US, Jindal said.
However, the latest tariff can slash steel exports to the US by 85%, he said, creating “a massive surplus that will likely flood India—one of the few major markets without trade restrictions presently”.
“With the US shutting its doors to global steel, the surplus will inevitably be redirected to India, threatening our domestic industry with market distortions, price crashes, and unfair competition,” Jindal said.
Indian steel mills have been crying foul over the rising imports of the alloy into the country. They have alleged that many countries, especially China, have been dumping the metal into the country at predatory prices, hurting the domestic industry.
Following a complaint from the ISA, New Delhi has initiated a probe into the steel imports to determine whether any World Trade Organization-compliant safeguard duty can be levied on the inbound shipments.
India’s steel imports grew 22% in 2024 compared to the preceding year to 9.2 million tonnes, led by a surge in imports from China and Japan. While the volume of imports is small compared to India’s annual steel demand of around 140 million tonnes, inexpensive imports are disrupting the prices of domestic steel mills, which claim that the current price levels cannot sustain continued investment in capacity expansion.
Domestic steel prices have dropped to a four-year low. Benchmark hot-rolled coils (HRC) of steel cost an average of ₹46,567 per tonne in January, 14% lower year-on-year, according to data from BigMint, a market intelligence firm.
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Business NewsIndustryIndian steelmakers’ SOS to govt: intervene against Trump’s tariffs
First Published:10 Feb 2025, 10:33 PM IST
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