‘U.S. move to raise import duty may hit domestic steel market’
- The proposal by the Trump administration to levy a steep tariff on steel imports will encourage steel-surplus nations to divert their exports to vibrant consumption centres like India and distort domestic markets considerably.
- U.S. move to club India, a steel non-mature country, with other steel surplus nations “is not appropriate.”
- The U.S. proposal would dent the growth prospects of a developing nation like India, whose production and consumption were inward looking.
- The proposal, if implemented, would result in major shifts in existing global trade flows of steel and steel products.
- Though India is the third largest producer of steel and produces 12% of the world’s non-Chinese production of steel, it has only a 2.7% share in the U.S. imports.
- There were a total of 16 trade remedies in place in the U.S. against Indian steel companies. This included 10 anti-dumping and six countervailing duties. All these had made it nearly impossible to export to the U.S.
Key points to remember