US Tariff Won’t Hit Indian Steel, But Europe Operations May Feel Heat: Tata Steel CEO

Tata Steel CEO and Managing Director T V Narendran on Wednesday said the 50% tariff imposed by the United States is unlikely to significantly impact India’s domestic steel industry, though the company’s European business could face pressure.

“The US tariff will not have much direct impact on the domestic steel sector as India does not export steel there. But Tata Steel’s European operations, which ship steel to the US, may feel the pinch since similar tariffs apply there too,” Narendran said.

He added that the new trade barrier is expected to hurt other Indian export-oriented sectors such as textiles and gems, and jewellery more severely.

Despite global headwinds, Narendran struck a confident note on India’s steel market. “Our growth rate is good, and domestic demand is increasing. Steel consumption in India continues to grow. But we have to remain competitive at all times,” he said, pointing to the resilience of local demand even amid international disruptions.

The Tata Steel chief also underlined the government’s ongoing efforts to cushion industries from the tariff’s impact, highlighting reform proposals such as restructuring the Goods and Services Tax (GST). According to him, such measures are key to maintaining India’s manufacturing competitiveness in the global market.

Narendran also used the occasion to emphasise Tata Group’s legacy of “nation-building.” He said the company remains committed to uplifting communities around its operational areas through development initiatives.

Earlier in the day, he paid tribute to Sir Dorabji Tata, former chairman of the Tata Group, on his 166th birth anniversary. “There are a lot of leadership lessons to learn from Sir Dorabji Tata,” Narendran noted, linking the group’s modern challenges with its founding values.

The remarks come against the backdrop of Washington’s decision to double import duties on Indian goods, raising tariffs to 50%—a move that threatens nearly $48.2 billion worth of India’s exports across multiple sectors.