Trump’s Tariff Bomb: 50% Duty on Steel & Aluminum – Will India Feel the Heat?

International News: The Trump government of the US has once again doubled the import duty on steel and aluminum, surprising the global trade world. This decision will be applicable from June 4 and under this, now a fee of up to 50 percent will be charged on steel-aluminum products coming to America from any country. Experts consider it as another aggressive chapter of President Donald Trump's 'Make America Great Again' policy, which can not only shock the global steel market, but can overshadow its own industries in the US.

How much loss to India? Government's response came out

However, the Government of India believes that this decision will not have any major impact on steel exports to America from India. Union Steel Minister H.D. Kumaraswamy said in a special interview to Dainik Jagran, "There remains instability in America's fee policy. The increase at the moment does not show any negative impact on our exports. But we should wait a few months, then the picture will be clear only."

India exported a total steel and aluminum worth a total of $ 4.56 billion to the US last year, contributing $ 3.1 billion of iron-steel exports. The demand for Indian steel was increasing rapidly in the US market, as prices are already high there.

Huge difference in prices: India can get strategic benefits

According to GTRI (Global Trade Research Initiative), steel in the US is priced at $ 984 per ton, which is much higher than Europe ($ 690) and China ($ 392). At the same time, the price of steel in India is $ 500-550 per ton. Steel prices in the US can go up to $ 1180 per ton, which will cost additional burden on areas such as construction and automobiles in the US.

Steps taken in the hope of returning?

The Trump administration is introducing this tariff hike as a step towards reviving domestic manufacturing. Its purpose is that US companies, which shifted abroad due to cheap production costs, now return to domestic production. But experts believe that this policy may be reversed, as it will increase the cost in the US automobile and infrastructure sector and will also put inflation pressure on consumers.

Will India take the matter again in WTO?

Significantly, in the year 2018, when Trump first imposed a 25% and 10% fee on steel and aluminum, India raised a formal objection to the World Trade Organization (WTO). This time the fee rate has been doubled, in such a situation, the eyes are on the next strategy of the Government of India - will India then knock the door of WTO?

India's vigilant monitoring

The Government of India is currently monitoring the steps of those countries that can narrow the path of global steel trade. In addition, policy options are under discussion to avoid any possible impact on domestic industry. Industry experts believe that if prices go up in the US very much, India may get better export opportunities than countries like China and European Union. 

Donald Trump's import duty policy has once again increased towards affecting global trade balance. For India, it is a two -edged sword - where there is a possible risk, while also a strategic opportunity. The coming months will decide in which direction this new trade policy of America will take the global market and how India can balance in front of it.