Due to the 25% tariff on US steel imports, there is a possibility of a major impact on the trade of steel and steel products in the world. The Indian Steel Association (ISA) has warned that due to an imposition of the tariff in the US, the country’s production of large quantities of steel will be forced to divert large portions of its exports to India, which is in excess consumption of steel. This can hamper India’s steel market and the import of steel in the country can be very high.
Members of the ISA include major companies producing steel such as Tata Steel, JSW Steel, Jindal Steel, RINL and Government Company Steel Authority of India Limited.
ISA Secretary-General, Bhaskar Chatterjee, said that it is not okay to link the country with less export of steel such as India to the countries with steel surplus production. India is the third largest producer of steel in the world, but India’s share in US steel imports is only 2.7%. ISA says that the per capita demand for steel in India is very low and a large portion of steel production is kept to meet the country’s needs.
India’s steel companies are already facing many obstacles in terms of export. The steel products which have restrictions on exports include coronation resistance steel, cold rolled flat steel items, some hot rolled steel products and cut to long carbon steel plates. This will damage the prospects of growth for a developing country like India.
Along with this, ISA has said that steel is an important material for defense and military combat vehicles and for this reason it can be understood that a country would like to protect its industry from any threat to its national security. ISA believes that the US should not impose a tariff on Indian steel companies.