Union Steel and Heavy Industries Minister H.D. Kumaraswamy has outlined the government’s strategy to protect the Indian steel industry [1] in light of the new tariffs imposed by the United States. The announcement comes after U.S. President Donald Trump imposed a 25% tariff on steel imports from Canada and Mexico, and a 10% levy on Chinese imports.
Speaking at an event organized by the Automotive Component Manufacturers Association of India (ACMA), Kumaraswamy emphasized that the Indian government would adopt a “wait and watch” approach to assess the impact of these tariffs on the domestic steel industry. He stated that the Indian government is closely monitoring the situation and that government would devise a comprehensive trade strategy once there is clarity on the extent and quantum of the tariffs imposed by the U.S.
The minister highlighted that the new U.S. tariffs on Chinese goods could potentially increase the cost of Chinese products, thereby giving Indian steel products a competitive edge in the global market. Ajay Sahai, Director-General and CEO of the Federation of Indian Export Organisations, echoed this sentiment, noting that the lower tariffs on Indian products could provide a significant advantage over Chinese goods.
However, Kumaraswamy also acknowledged the uncertainty faced by Indian exporters due to the unpredictability of future tariff impositions. Commerce department officials have been closely studying the opportunities and challenges presented by the new tariffs, including whether they will apply to all countries or be country-specific, and how they may impact specific sectors.
India, being one of the fastest-growing major economies, has identified key sectors such as electronics, pharmaceuticals, textiles, auto components, and chemicals to boost exports to the U.S. amid the possibility of a trade war between Washington and Beijing. The government anticipates that steel production in India will increase from 120 million tonnes (MT) to 300 MT over the next five years, driven by rapid urbanization, infrastructure development, and industrial growth.
Despite the potential benefits, there are concerns about the environmental impact of increased steel production. According to the Global Energy Monitor, steelmaking currently accounts for up to 12% of India’s greenhouse gas emissions, and this figure could double in the next five years if production increases as planned.
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[1]Trade strategy for steel industry after clarity in tariffs: Steel Minister https://www.business-standard.com/industry/news/protection-for-indian-steel-industry-after-clarity-in-tariffs-kumaraswamy-125030400764_1.html