US tariffs may shift trade, increase India's steel import risk: Sail chair

The Donald Trump administration has proposed a 25 per cent tariffs on all steel and aluminium imports into the US and also announced imposing reciprocal tariffs on all its trading partners including India with effect from April 2.

Responding to a query on the US tariff moves, Prakash said it may change the trade flows. Traditionally steel has been travelling (exporting) from Asian countries to the US and Europe.

Some steel was being exported to the US from Europe. Once the reciprocal tariffs take effect, such exports would become unviable.

When asked if the tariff will impact India's exports of steel to the US, the chairman said it will not affect much as the commodity's outbound shipment is not in large quantity.

About the demand to curb cheap imports in the country, Prakash said the safeguard duty is urgent for the domestic steel industry.

The Directorate General of Trade Remedies (DGTR), the investigation arm of the commerce ministry, last month recommended imposition of a 12 per cent provisional safeguard duty for 200 days on certain steel products with an aim to protect domestic players from surge in imports.

The final decision to impose the duty will be taken by the finance ministry.