India Faces Challenge from Low-Cost Steel Imports Amid US Tariff Policies

India risks increased low-cost steel imports as countries affected by recent US tariffs might redirect shipments domestically. While reciprocal tariffs from the US impact some sectors, steel is notably absent, leaving India reliant on domestic measures to guard against import influx and safeguard its industry.

India's domestic steel market could face increased vulnerability as low-cost imports flood in, following new US tariff measures. The Indian Stainless Steel Development Association (ISSDA) has raised concerns about countries redirecting exports to India after facing US tariffs.

President Donald Trump's recent announcement of reciprocal tariffs imposed on approximately 60 countries is aimed at addressing trade imbalances. In response, India faces new tariff challenges, with the US criticizing its high import duties on American products. However, the US's latest tariff order does not include sectors already covered under Section 232, such as autos and steel.

ISSDA President Rajamani Krishnamurti warned that these policies could trigger significant trade diversions, threatening Indian steel producers. He called on the government to monitor imports closely and deploy safeguards to protect the domestic industry from these looming threats.

(With inputs from agencies.)