The United States’ decision to hike tariffs on steel and aluminium imports is expected to have only a limited effect on India, according to Union Minister for Steel and Heavy Industries H D Kumaraswamy. Speaking to the media in New Delhi, the minister said India’s steel exports to the US are relatively small, and therefore the impact will likely be minimal. His comments came after US President Donald Trump announced plans to double existing tariffs on steel and aluminium from 25% to 50%.
The US relies heavily on imported steel, but most of it comes from neighbouring countries like Canada and Mexico or key allies such as Japan, South Korea, and Germany. India’s share in that market is minor, which is why the minister doesn’t foresee any major disruption for domestic producers.
However, the industry isn’t entirely at ease. There’s growing concern that countries more affected by the US tariff hike could begin redirecting their steel exports to India, taking advantage of its strong domestic demand. Ratings agency Fitch had earlier flagged this risk, suggesting that an influx of diverted shipments could weigh on Indian steelmakers and dampen prices.
Industry leaders are urging the government to be prepared. Jayant Acharya, Joint MD and CEO of JSW Steel, warned that trade flows are shifting fast and that India could face a wave of redirected exports unless precautionary steps are taken. He stressed the importance of timely trade measures to avoid potential damage to local manufacturing.
Ranjan Dhar, Director and Vice President at AMNS India, said the government needs to stay alert to rising import trends. He expressed hope that adequate protection would be provided to domestic players, pointing out that other countries are taking firm steps to shield their industries. According to him, India must do the same if it wants to safeguard its market from the threat of cheap foreign imports.
