Mumbai: Metal exporters breathed a sigh of relief when the White House exempted steel and aluminum with an additional 27% duty. Last month, it imposed 25% tariff on steel and aluminum, the major materials used in everything from cars to kitchen equipment. When the copper was left out of the mutual tariff, the industry was surprised.
Indian metals and mining companies have minor exports in the US (less than $ 5 billion annually). “So to that extent, the first order on the area is not the impact material,” said the choice of Broking lead analyst (Basic Materials) Prashant Kota. He said that the region can withstand the results from possible secondary influences if a tariff struggle emerges between the US and other major economic powers.
Kota suggested that once India’s Finance Ministry supported 12% provisional security duty on steel, recently proposed by the Director General of Business Treatment (DGTR), the steel sector can be protected from secondary spillover effects of tariff disputes. Yes, Amar Ambani, executive director of Securities explained that unchanged 25% US tariffs on steel and aluminum American domestic prices will increase.
“However, exporters from Vietnam, Japan and South Korea are pivying for India and the Middle East, increasing India’s challenge with cheap steel imports,” Ambani said.
While copper is unaffected by tariffs, American assessments of import effects indicate 25% of duties in the future. “Such a step can reopened the trade and put pressure on the export nations,” Ambani said.
