Trump Aluminium Tariffs Hamper India’s Competitivity – Indian Trade Association

Trump Aluminium Tariffs Hamper India’s Competitivity – Indian Trade Association

The Trump administration’s blanket tariffs on aluminium and steel may make Indian exports of the same significantly less competitive compared to countries that have been granted an exemption from the measures. So states a recent report published by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The report, entitled “Global Tariff War: Implications and Challenges,” said that an exact outcome is difficult to forecast, but a likely outcome is a loss in Indian smelters’ competitive edge.

“(However) It would be difficult to estimate what would be the quantum of impact on Indian steel and aluminium exports consequent to imposition of tariffs on steel and aluminium, the Indian exports may become costlier and uncompetitive in the US market especially against other countries who are exempted from levy of tariff by the US.”

In addition to difficulties marketing to the United States, the report notes the distinct possibility of even more dumping of aluminium and steel on its own market going forward.

“The dumping raises fears that India after becoming a net exporter of steel for two straight years, supported ably by government policies, India could again turn a net importer in 2018-19.”

Per the report, dumping of steel on India’s market is well underway. Not only are leading steel-producing countries like the People’s Republic of China flooding India with low-priced steel, the report indicates that Japan and the Republic of Korea are doing the same with supplies that have been turned away from both the United States and the European Union.

Citing national security concerns raised by a year-long investigation, the Trump administration imposed a blanket 10-percent tariff on all imported aluminium earlier this year. Although a handful of countries won long-term exemptions to the tariff, India was not among them. The Indian government has since lodged a complaint with the World Trade Organization.