US President Donald Trump’s move to hike import tariffs on steel will adversely hit India’s local markets, says Indian Steel Authority (ISA). The nations with surplus production of steel will divert their produce to consuming countries such as India affecting their local steel industry, PTI reported citing Indian Steel Authority. On March 1, US President Donald Trump had announced a tariff hike of 25 percent on steel imports and 10 percent on aluminium imports to protect the interests of US producers. Including India in the same league as other steel surplus nations is ‘not appropriate’, PTI reported citing ISA. It is not desirable as a policy to include Indian among these countries, ISA said.
The growth prospects of developing nations such as India gets adversely affected because its production and consumption is inward-looking, ISA further said. Despite India being the third largest steel producer globally only accounts for 2.7 percent share in the US imports.
Meanwhile, India’s is not mulling over coming out with a reaction to America’s’ decision to increase tariffs on steel and aluminium, Financial Express reported. However, any restriction imposed by the US on items which are crucial for India including textiles and garments will force the country come up with retaliatory actions and fighting out its case at the World Trade Organisation (WTO), Financial Express reported citing unidentified sources.
The major items that India exports to the US include gems & jewellery, garments & textiles and pharmaceuticals which account for 44 percent of India’s goods exports made to the country. The US won’t be helped much by targeting India in terms of trade cut, as India accounts for only 2.8 percent of US’ total goods trade deficit of $810 billion last year, trade analysts believe. China accounts for 46 percent of US’ merchandise trade deficit last year, and it is followed by the EU i.e. 19 percent.