Tariff Shock: India's Steel Industry Faces Ripple Effects from US Policies

The Indian Steel Association (ISA) has expressed serious concern over the US administration's decision to impose additional tariffs on steel imports. This move is expected to destabilize global trade and challenge the Indian steel industry by redirecting surplus steel to India, potentially crashing local prices.

The Indian Steel Association (ISA) voiced strong concerns on Monday regarding the US administration's new tariffs on steel imports, highlighting the potential for significant global trade disruption.

Naveen Jindal, the ISA President, stated that the announced tariffs by US President Donald Trump, including an additional 25% on steel and aluminium imports, threaten to cut Indian steel exports to the US by 85% and may lead to a flooding of surplus steel into India.

This surplus, exacerbated by existing US import restrictions and anti-dumping duties on Indian steel, could harm India's domestic market with price declines and heightened competition. Moody's Ratings warns that these challenges will further strain Indian steel exports.

(With inputs from agencies.)