India may see influx of steel imports from U.S. tariff-hit countries, say experts

U.S. reciprocal tariffs are expected to disrupt global trade flows and affect alternative markets like India with increased steel imports from countries hit by President Donald Trump’s import levies, experts said.

The U.S. reciprocal tariffs are expected to disrupt global trade flows and affect alternative markets like India with increased steel imports from countries hit by President Donald Trump's import levies, experts said.

Also read | Trump tariff announcement LIVE Updates

President Trump on Wednesday (April 2, 2025) announced reciprocal tariffs on about 60 countries in a historic measure to counter higher duties imposed globally on American products.

For India, the U.S. has announced 27% reciprocal tariffs saying New Delhi imposes high import duties on American goods, as the Donald Trump administration aims to reduce the country's trade deficit and boost manufacturing.

However, automobiles and auto parts and steel and aluminium articles, already subject to Section 232 tariffs at 25%, announced in March, are not covered in the latest order.

Indian Stainless Steel Development Association (ISSDA) said the overall volume of (stainless steel) exports to the U.S. remains modest, limiting the direct impact of reciprocal tariffs on India's stainless steel sector.

"The greater concern, however, lies in the potential trade diversions triggered by such policies. Countries facing U.S. tariffs may redirect their exports to India, leading to an influx of low-cost imports," ISSDA President Rajamani Krishnamurti said.