SUMMARY
The US government's plan to impose additional tariffs on steel imports will have little impact on India, as the country's steel exports to the US are minimal, according to Steel Secretary Sandeep Poundrik.
The US announcement to impose additional tariffs on steel imports will not have much impact on the Indian steel industry due to the strength of the domestic market and the minimal volume of exports to America, Steel Secretary Sandeep Poundrik said on Monday.
Speaking at the 'Minerals Mining & Metals Conclave' organised by the Bengal Chamber of Commerce and Industry (BCC&I), Poundrik pointed out that India's steel exports to the US are negligible compared to its total production.
"...the US President has said about putting tariffs on steel. How much steel actually do we export to the US? We produced 145 million tonnes of steel last year, of which 95,000 tonnes were exported to the US. So, how does it matter if out of 145 million tonnes, you are not able to export 95,000 tonnes," Poundrik said.
His remarks come after US President Donald Trump announced plans to impose an additional 25% tariff on all steel and aluminium imports, as part of an escalation in the country’s trade policy.
Trump, speaking to reporters on Air Force One, said, "Tariffs are going to make it [the American steel industry] very successful again, and I think it has good management."
He also reiterated plans for reciprocal tariffs to ensure that the US is treated evenly with other countries, saying, "And very simply, it's, if they charge us, we charge them."
Poundrik stressed that India's robust domestic demand would continue to drive the steel industry.
India's domestic market itself is so strong with growing consumption that the steel industry will find it difficult to cater to that in the coming years, he noted.
However, the bureaucrat acknowledged that rising protectionist measures globally could pose challenges for Indian steel exports.
Exports will become a problem as more countries put safeguards and restrictions, Poundrik added.
Official data shows that India's steel exports shrank 28.9% to 3.99 million tonnes during April-January of FY25, compared to 5.61 million tonnes in the corresponding period of the previous fiscal. Meanwhile, steel imports surged over 20% to 8.29 million tonnes during the same period, making India a net importer of steel.
In 2018, when the US previously imposed tariffs on steel and aluminium, India retaliated by raising duties on 29 US products to recover equivalent revenue.
***With PTI inputs***
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