Steel Exports from India to U.S. Nosedived 35%

SEATTLE (Scrap Monster): The Ministry of Industry and Commerce in India announced that the country’s total steel exports to the U.S declined sharply by 35% during the financial year 2018-’19. This was disclosed in a written reply by Minister Piyush Goyal. Meantime, exports of aluminum surged 14% during the previous fiscal.

The notable decline in exports of steel to the U.S. was mainly due to imposition of hefty tariff on steel by the U.S. authorities.

Earlier in March last year, the U.S. President Donald Trump had signed a proclamation imposing tariff of 25% on steel and 10% on aluminum imports into the country. The revenue implication on domestic steel and aluminum products on account of the tariff was estimates at around $240 million. It must be noted that Canada and Mexico were exempted from tariffs on the grounds of security relationships with the country.

In retaliation, India recently announced hike in customs duties on around 28 products imported into the country from the U.S., thereby hurting American exporters of these products, being forced to pay higher duties.

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The US-India Business Council (USIBC) observed that tariffs and trade barriers adversely impact customers in both the countries. It called for a transparent and consultative dialogue between the governments and the industry in order to resolve outstanding issues and strengthen the strategic partnership between the two countries. It hoped that both the countries will use U.S. Secretary of State Mike Pompeo’s upcoming India visit as an opportunity to resolve trade fictions.