Higher steel tariffs to dent exports as companies look at other markets

Representative picture (Picture credit score: AP)

NEW DELHI: Doubling of import responsibility on steel and aluminium by the Trump administration will dent export demand, with companies having to scout for different markets.Several US importers have gone sluggish on contemporary orders as prices went up considerably after the imposition of 25 per cent responsibility, though India was not seen to be worse off, on condition that the identical responsibility applies to all nations. But if Trump decides to transfer forward together with his risk, a number of American companies could have to decelerate manufacturing as such duties are seen to be unviable and unsustainable. This will even cut back demand for inputs.“The economic impact will be significant. US steel prices are already high, at around $984 per metric tonne – far above European prices at $690 and Chinese prices at $392. The doubling of tariffs is expected to push US prices to about $1,180, squeezing US domestic industries such as automotive, construction, and manufacturing that depend on steel and aluminium as key inputs. These sectors may face hundreds of dollars in additional material costs per tonne, driving up prices, reducing competitiveness, and risking job losses or inflationary pressures,” mentioned commerce analysis physique GTRI.Fieo chief S C Ralhan mentioned the rise in tariffs would have a major bearing on India’s steel exports, particularly in semi-finished and completed classes like stainless steel pipes, structural steel elements, and automotive steel elements. These merchandise are a part of India’s rising engineering exports, and better duties may erode our value competitiveness within the US market.EEPC India president Pankaj Chadha mentioned, “It’s unfortunate that while bilateral trade talks are going on between India and the US, such unilateral tariff increases have be done. It only makes the work of negotiators more complicated.” Last fiscal, India exported steel and completed merchandise of $6.2 billion to the US and about $0.9 billion of aluminium and its merchandise. The US is among the many high locations for Indian exporters, who’ve been rising market share by means of high-quality manufacturing and aggressive pricing, Fieo mentioned.