FIEO concerned over US steel &
aluminum tariff hike; Seeks diplomatic engagement to safeguard Indian steel
exports
The Federation of Indian Export Organisations (FIEO) has expressed
concern over the recent announcement by the US President to double import
tariffs on steel and aluminium from 25% to 50%, citing potential disruption to
India’s steel and aluminium exports, particularly in value-added and finished
steel products and auto- components.
Reacting to the development, Mr S C Ralhan, President, FIEO stated
that the proposed increase in US steel and aluminum import tariffs will
have a significant bearing on India’s steel exports, especially in
semi-finished and finished categories like stainless steel pipes, structural
steel components, and automotive steel parts. These products are part of
India’s growing engineering exports, and higher duties could erode our price
competitiveness in the American market.
India exported approximately US$6.2 billion worth of steel and
finished steel products to the US in FY2024-25 including a wide range of
engineered and fabricated steel components and about US$ 0.86 billion of
aluminum and its products. The US is among the top destinations for Indian
steel manufacturers, who have been gradually increasing market share through
high-quality production and competitive pricing.
President FIEO further added that while we understand that the decision
stems from domestic policy considerations in the US, such sharp increases in
tariffs send discouraging signals to global trade and manufacturing supply
chains. We urge the Government to take up the issue at the bilateral level to
ensure that Indian exporters are not unfairly disadvantaged more so far the
shipments, as 25% additional duty will be a huge burden, which is difficult to
be absorbed by the exporter/importer.
FIEO Chief also emphasized the need for Indian exporters is to diversify
their markets and invest in higher-grade value-added products to mitigate the
impact of such protectionist measures.
