- By Nidhi Giri
- Tue, 03 Dec 2024 02:31 PM (IST)
- Source:JND
US President-elect Donald Trump on Tuesday hinted at fresh tariffs on imported steel to safeguard the American steel industry. The move is likely to impact Indian steel companies at a time when they are grappling with several challenges in international markets and facing a sharp decline in exports. Trump said that he would even block Nippon Steel, a Japanese company, from acquiring the Pennsylvania-based steel manufacturer, US Steel.
“I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan. Through a series of tax incentives and tariffs, we will make the U.S. Steel strong and great again, and it will happen FAST! As President, I will block this deal from happening. Buyer beware!!!” Trump said.
During the first half of the ongoing financial year, steel imports into India surged by approximately 41 per cent, while exports declined by 36 per cent, official data stated.
The Commerce and Industry Ministry and the Steel Ministry had met with industry stakeholders on Monday to discuss the looming problems in the steel industry. Taking note of the domestic steel industry’s concerns, the Steel Ministry proposed a 25 per cent safeguard duty on the import of certain steel items, PTI reported.
Last month, Steel Secretary Sandeep Poundrik at an industry event said that steel consumption in India is rising, adding that profitability of the steel manufacturers are declining.
Rating agency India Ratings had earlier reported in October that the surge in steel imports has affected the profit margins of domestic players, with these pressures expected to intensify during the second half of the ongoing financial year.
“Ind-Ra believes the Indian steel industry is experiencing margin pressure due to higher volumes of lower-priced steel imports from countries such as China, Vietnam, Japan, and Korea. This pressure is expected to intensify in the second half of FY25,” the agency stated.