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US President Donald Trump announced 25% tariff on steel imports from all countries and 10% on aluminum. This will also affect India. This decision has been taken two days before PM Narendra Modi’s visit to America (12-14 February).
Trump told reporters while going from Florida in Air Force One to New Orleans- This tariff will be imposed on any steel and aluminum coming to the US.
Trump cleaned, he will announce a mutual tariff on 11 or 12 February. Meaning that the US will impose import duty on products on which other countries pay duty on American goods. He said, “If they are charging 130% of us and we are nothing, then this is not going to happen.”
If the US imposes 25% tariffs on steel and aluminum, then the buyers there will be very expensive to buy these metals and their products. This will decline in the imports of both these metals in the US.
If America will reduce buying these metals, then India may lose billions of rupees every year. Let us know that in his first term in 2018, Trump also imposed 25% tariff on steel and 10% on aluminum.
Effect on America; It will take 3 years to increase production, so domestic prices will increase …
- Tariffs on steel will benefit American steel growers. The demand for domestic steel will increase and their sales prices will also increase.
- According to Morgan Stanley, it may take three or more years to build and turn on new smelters and mills. In such a situation, domestic prices may increase for local buyers.
- America is dependent on foreign supply to meet the demand for metals for vehicle manufacturing, technical and military equipment. In 2023, 13% of the need from imports completed steel.
Effect on India; Loss of Arabs, 6.50% in total American exports
- In FY 2023, India received Rs 34,984 crore in the US. Steel of Rs and exported aluminum of Rs 9,620 crore. Meanwhile, India’s total export to America was Rs 6.77 lakh crore. That is, steel-aluminum stakes up to 6.5%.
- In January 2024, there was an agreement between India and the United States. Under this, the two countries agreed to the import-export of 3.36 lakh tonnes of steel-aluminum without tariffs. Exports to India will become expensive with 25% tariff.
More impact on Canada-Maxico The most steel-aluminum to the US goes from Canada, Mexico and Brazil. Not a major stake of China. However, China alone produces steel-aluminum equal to the whole world. In such a situation, Canada and Mexico used to buy these metals from China and send them to America.
