India Awaits Tariff Clarity for Steel Trade Strategy: Kumaraswamy

The Indian government is adopting a cautious approach to its steel trade strategy, awaiting clarity on the tariffs imposed by the United States. Union Steel and Heavy Industries Minister, HD Kumaraswamy, announced on Tuesday that a comprehensive plan for the steel industry will be developed only after understanding the full scope of these tariffs.

This statement follows the recent move by US President Donald Trump, who imposed a 25% tariff on steel imports from Canada and Mexico and a 10% levy on imports from China. The tariffs, which took effect on Tuesday, are part of the US administration’s broader trade policy. Although President Trump has often criticized India for high tariffs, no action has been taken against New Delhi 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 levy of any tariffs by the developed world on steel and steel products.” He emphasized the need for clarity on the extent and impact of the US tariffs before formulating a response to safeguard Indian businesses.

The tariffs on Chinese goods could indirectly benefit Indian exporters by making their products more competitively priced in the US market. Ajay Sahai, Director-General and CEO of the Federation of Indian Export Organisations, highlighted this advantage, suggesting that Indian goods might gain a competitive edge over Chinese products due to lower tariff rates.

Over the past month, officials from the commerce department have been analyzing the potential challenges and opportunities arising from the US tariffs. Sectors like electronics, pharmaceuticals, textiles, auto components, and chemicals have been identified as key areas to boost exports to the US amid the looming trade tensions between Washington and Beijing.

India, the world’s most populous nation and one of the fastest-growing economies, is witnessing a surge in steel demand driven by rapid urbanization, infrastructure development, and industrial growth. The government projects steel production to nearly triple from the current 120 million tonnes to 300 million tonnes in the next five years. However, the steel industry’s environmental impact remains a concern, with up to 12% of India’s greenhouse gas emissions attributed to steelmaking, according to the Global Energy Monitor.

As the situation evolves, India’s strategic response to the US tariffs will be closely watched by industry stakeholders.