The Indian stainless steel sector warns that new US tariffs will disrupt trade relations and flood the domestic market with diverted shipments. Industry leaders urge government intervention as Donald Trump’s move sparks uncertainty.
The Indian stainless steel industry has voiced serious concerns over the latest tariff announcement by the US administration, stating that the decision will impact trade relations between the two nations and increase market pressure due to redirected imports.
Industry leaders anticipated that stainless steel will be a key topic of discussion between Prime Minister Narendra Modi and President Donald Trump.
Donald Trump recently announced a 25 per cent tariff on steel and aluminium imports, affecting multiple exporting nations. The Indian Stainless Steel Development Association (ISSDA) has criticised the move, calling it a dual setback for India—reducing access to the US market while intensifying global competition.
“Indian manufacturers have consistently delivered high-quality, sustainable, and cost-effective stainless steel to the US. However, these new trade barriers will restrict growth, impact job creation, and strain bilateral trade relations between two major economies,” said ISSDA President Rajamani Krishnamurti.
Reacting to the development, Jindal Stainless MD Abyudhay Jindal highlighted the industry’s wait for more details regarding product coverage and the impact of existing tariffs.
Notably, this isn’t the first time the US has imposed such trade restrictions. In 2018, during his first presidency, Donald Trump had enforced a 25 per cent duty on steel imports and a 10 per cent levy on specific aluminium products.
Expressing concerns over the broader implications, Synergy Steels MD Anubhav Kathuria pointed out that India’s status as a net importer of finished stainless steel makes the situation more challenging. Higher tariffs could lead to an influx of diverted Chinese and Asian steel shipments, increasing competition and pushing down domestic prices. This, in turn, could hurt smaller Indian producers struggling with low-cost dumping from China.
According to official data, India’s finished steel exports dropped 28.9 per cent to 3.99 million tonnes between April and January in FY25, compared to 5.61 million tonnes in the same period of the previous fiscal year. Meanwhile, steel imports surged over 20 per cent to reach 8.29 million tonnes in the same timeframe, further emphasizing the growing trade imbalance.
With US tariffs under Donald Trump creating uncertainty in global trade, the Indian stainless steel industry is calling for strategic policy measures to protect domestic producers and ensure fair competition.
