Tariffs on Steel and Aluminium
President Donald Trump announced a 25% tariff on all steel and aluminium imports, including from Canada, Mexico, and other countries.
Trump plans to introduce "reciprocal tariffs," meaning the U.S. will impose duties on products from countries that have high tariffs on U.S. goods.
Trump views import taxes as a tool for securing concessions on issues like immigration and as a way to generate revenue to reduce the U.S. budget deficit.
Experts expect that the tariffs will boost demand for U.S. steel and raise prices for local producers.
Impact on India
India’s steel exports to the U.S. are minimal, with only 95,000 tonnes exported last year, so the impact of these tariffs is seen as limited for India
The tariffs could increase competition in other steel markets, making it harder for Indian producers to export.
Oversupply in global markets could affect Indian prices and earnings.
India has not officially responded to the new tariffs, but it had previously retaliated with its own tariffs when the U.S. imposed steel and aluminium tariffs in 2018.
Other Issues
Trump’s administration has also made decisions affecting India, including
modifying sanctions waivers for the Chabahar port project in Iran and
threats about tariffs on BRICS countries if they bypass the U.S. dollar in trade.
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