(NDTV Profit)
The US’ higher tariffs on Europe and other steel producing countries in Asia may mean the global trade float can make its way to India, making the country more vulnerable to steel imports, according to SAIL Chairperson Amarendu Prakash.
Speaking to reporters during the curtain-raiser of the 11th Asian Mining Congress and 11th International Mining Exhibition in New Delhi, Prakash said the current situation is volatile and it is prudent to wait and see what Trump has in store in terms of reciprocal tariffs.
“Steel has been travelling from Asian countries to the US and Europe. Some steel was being exported to the US from Europe. Once the reciprocal tariffs take effect, such exports would become unviable,” he said.
“The EU might see tightening of tariff rate quotas amid US tariffs… That will mean Asian countries like China, South Korea and Japan that are exporting to Europe, that steel becomes free and will be floating around in the world. This floating trade might come to India,” Prakash added.
The government is cognisant of this and is working on the situation. He added that India itself is not a big exporter of steel products, so tariffs are not a big challenge.
“Those capabilities (critical steel components) do not get developed overnight. So the prices will go up, but the US will continue to import those items which they do not produce. Setting up a manufacturing unit for those things will take time,” Prakash said.
On the safeguard duty imposed by India, he said it was “urgent” and felt that “it has to come” for the domestic steel industry.
The Directorate General of Trade Remedies, which is the Commerce Ministry’s trade investigations arm, on March 19, recommended the duties be applied for a period of 200 days, following a three-month long investigation.
