The imposition of heavy tariff by the Trump administration forced the Indian government to impose duties on 16 US imported products.
The US' levy of heavy tariffs on imported steel and aluminum would not have any major impact on steel production in India as steel export to US was only 3.3 percent of total exports, Union Steel Minister Chaudhary Birender Singh said here today.
The imposition of heavy tariff by the Trump administration forced the Indian government to impose duties on 16 US imported products, he told reporters here. Singh said initially the government expected U.S. to withdraw the heavy import tariff on steel and aluminum, but it did not. Nevertheless, the government is working towards avoiding over production and maintaining trade balance, he added.
President Donald Trump earlier had said that heavy tariffs on imported steel and aluminum were necessary to boost the US industry, suffering from "unfair" business practises. He had signed two proclamations that levied a 25 per cent tariff on steel and a 10 per cent tariff on aluminum imported from all countries, except Canada and Mexico.
Singh hoped that countries facing this tradehurdle would succeed in making US withdraw the levy soon. To a query on setting up a steel plant in Kadapa district of Andhra Pradesh, an issue on which TDP MP CM Ramesh is on a fast, Singh said a decision would be taken after studying the feasibility report. "Mecon Limited, a project consultant for the proposed steel plant in Kadapa, will draft a feasibility report, which will be taken up for discussion in the task force committee meeting before submitting it to the ministry. We will then take note of it and decide," he said. Mecon Limited is project consultant for the proposed steel plant.
TDP MPs had staged protests outside Singh's residence in New Delhi yesterday after they failed to get an assurance or a deadline from him as to when the plant would be set up. TDP leaders are demanding fulfillment of promises made by the Centre in the Andhra Pradesh Reorganisation (APR) Act and setting up of steel plant in Kadapa. However, the Centre had told the Supreme Court about its position questioning the financial viability of setting up the steel plant.Andhra Pradesh Chief Minister and TDP chief N Chandrababu Naidu had earlier said despite Mecon giving the thumbs up through its feasiblity report, the Centre had filed an affidavit in the Supreme Court against it. The proposed steel plant has become another point of confrontation between the Centre and the TDP-ruled Andhra Pradesh. In March, TDP had pulled out of the NDA government over its refusal to grant special status to the state.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.