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India going slow on its steel trade strategy pending clarity on US tariffs Union Steel and Heavy Industries Minister, HD Kumaraswamy, said on Tuesday that a full plan for the steel industry would be implemented only after it is clear what the extent of these tariffs is.

The statement comes after US President Donald Trump recently slapped a 25% tariff on steel each from Canada and Mexico and a 10% tax on China imports. The tariffs, which were imposed on Tuesday, are part of the US administration’s more general trading stance. President Trump has condemned India for high tariffs, but no action against New Delhi has been taken so far.

Speaking at an event organized by the Automotive Component Manufacturers Association of India (ACMA), Kumaraswamy said, India “will wait and watch” on the imposition of any tariffs by developed world countries on steel and steel products. “It is important to ascertain the magnitude and impact of the US tariffs before conveying the response and ensuring the protection of Indian businesses,” he said.

US import tariffs on Chinese goods might, indirectly, help Indian exporters by allowing Indian equipment manufacturers to sell at competitive prices in the US market. This advantage, if leveraged, potentially gives a foothold for shipments of Indian goods to become competitive vis-à-vis Chinese products having a lower tariff rate, said Ajay Sahai, Director-General and Chief Executive of the Federation of Indian Export Organisations.

Department of Commerce officials have been assessing how the US tariffs could cause challenges and the potential opportunities they may also create over the past month. The identified sectors, including electronics, pharmaceuticals, textiles, auto components and chemicals, are seen as opportunity areas for stepping up exports to the US in the wake of the growing trade war between Washington and Beijing.

The world’s most populous country and one of its fastest-growing economies is experiencing a steel demand bump from fast-paced urbanization, infrastructure growth and industrialization. Steel production in India, now at 120 million tonnes, is forecast to triple to 300 million tonnes in the next five years, according to the government. Even so, the environmental impact of the steel industry is still an issue, with steelmaking responsible for up to 12 percent of India’s greenhouse gas emissions, according to the Global Energy Monitor.

As the situation develops, industry stakeholders will be watching closely how India responds strategically to the US tariffs.