MUMBAI: Metal exporters heaved a sigh of relief when White House exempted steel and aluminium from an additional 27% duty. Last month, it had imposed a 25% tariff on steel and aluminium, key materials used in everything from cars to kitchen appliances. The industry was surprised when copper was also left out of reciprocal tariffs.
Indian metals and mining companies have modest exports to the US (less than $5 billion annually). “So to that extent, the first order impact on the sector is not material,” said Choice Broking lead analyst (basic materials) Prashanth Kota. He added that the sector could face consequences from potential secondary effects if a tariff conflict emerges between the US and other major economic powers.
Kota suggested that once India’s finance ministry endorses the 12% provisional safeguard duty on steel, recently proposed by the Directorate General of Trade Remedies (DGTR), the steel sector might be protected from secondary spillover effects of the tariff dispute. Yes Securities’ executive director Amar Ambani explained that the unchanged 25% US tariff on steel and aluminium will increase US domestic prices.
“However, exporters from Vietnam, Japan, and South Korea are pivoting to India and the Middle East, exacerbating India’s challenge with cheap steel imports,” Ambani said.
While copper remains unaffected by tariffs, US assessments of import impacts indicate possible 25% duties in future. “Such a move could reshape trade and put pressure on export nations,” Ambani said.