US Tariffs Impact India's Steel Imports: SAIL Chairman

New Delhi, Apr 2 (PTI) The imposition of higher tariffs by the US may change the global "trade flows", increasing the chances of India becoming more vulnerable to steel imports, SAIL Chairman Amarendu Prakash said on Wednesday.

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.

"That will mean Asian countries -- China, South Korea, Japan -- that are exporting to Europe, that steel becomes free and will be floating around in the world. This floating trade might come to India," he said.

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.

"That is not a big challenge. The critical steel or critical components, those capabilities do not get developed overnight. So the prices will go up, but the US will continue to import those items which they do not produce. Setting up a manufacturing unit for those things will take time," Prakash said.

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.

On the DGTR investigations related to metallurgical coke, he said quantitative restrictions (QR) are already in place "but curbs won't hurt steel producers".