US President Donald Trump’s announcement that he plans to impose a 25% tariff on all steel and aluminium imports is expected to have a ripple effect on the global steel market, potentially increasing the threat of steel dumping in the country, according to domestic steel manufacturers.
Industry executives said that while India is not among the top steel exporters to the US, the move is likely to force countries with higher export exposure to the US — such as Canada, Mexico, Brazil, and South Korea — to seek alternative markets, with India being a primary destination.
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Industry executives added that this could lead to an oversupply situation in India, further pressuring domestic steel prices that are already under strain due to rising imports from China. “The US, a major steel importer, has historically imposed strict trade restrictions, with over 30 remedial actions in force against Indian steel — some for more than three decades. This latest tariff is expected to slash steel exports to the US by 85%, creating a massive surplus that will likely flood India — one of the few major markets without trade restrictions presently,” said Naveen Jindal, president, Indian Steel Association (ISA).
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Analysts echoed similar concerns, adding that while direct Indian steel exports to the US are relatively small, the indirect impact from redirected exports could be substantial. “India is not among the top steel exporters to the US. Countries like Mexico, Canada, Brazil, and even Vietnam will be more affected. However, these countries may now look to India for their steel exports since very few markets have high steel demand like the US and India,” said V K Vijayakumar, chief investment strategist, Geojit Financial Services.
As a result, domestic steel companies could see further pricing pressure. Already, steel company stocks dipped between 2-4% on Monday following Trump’s statement, reflecting negative sentiment in the market. Steel industry executives fear this could cause domestic steel prices to remain soft or even decline further,
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