Indian steelmakers fear for future if unprotected from effects of Trump tariffs

Steel Authority of India

11/02/2025 13:18

By Neha Arora
       NEW DELHI, Feb 11 (Reuters) - India's smaller
steelmakers could be forced out of business by a further surge
in imports resulting from sharp tariff increases imposed by U.S.
President Donald Trump, industry executives warned on Monday.
    With Indian producers already facing increased competition
from rising cheap imports from some of the world's leading
producers, Trump has increased tariffs on steel and aluminium
imports to a flat 25%.
     "The increased tariffs may divert Chinese and other Asian
exports to India while heightening competition, creating a
downward pressure on domestic prices, and affecting small Indian
producers with low-cost Chinese dumping," said Anubhav Kathuria,
managing director of stainless steel producer Synergy Steels.
Steel prices in India have already dropped in recent months,
pressured by an influx of cheap imports, prompting smaller
producers to consider job cuts, Reuters reported in December.
    JSW Steel  JSTL.NS , India's biggest steelmaker, reported a
larger than expected decline in third-quarter profit last month,
hit by lower prices, subdued demand and rising imports.
    "We need to protect ourselves from other countries diverting
steel to India because we do not have any safeguards," said one
senior steel company executive, who did not wish to be
identified because he was not authorised to talk to the media.
    India, which became a net importer of steel in the 2023/2024
financial year, is investigating whether to impose a temporary
tax to curb imports.
    Separately, the Indian Steel Association, has sought
government intervention to secure exemption from U.S. tariffs. 

(Reporting by Neha Arora
Editing by Mayank Bhardwaj and David Goodman)
((mailto:neha.dasgupta@tr.com;))