Jindal Stainless, India's largest stainless steel producer, said the industry is awaiting further clarity on the scope of latest tariffs imposed by US President Trump, and pointed out the mechanism of exclusion requests between the two countries.
"Even now, Indian exports are subjected to 25% tariffs under Section 232. However, there is a mechanism in place wherein importers can file for exclusion. Based on the strategic pact signed between India and USA, up to 70% of the exclusion requests are to be considered favourably by the US government. As regards the announcement made yesterday, the industry waits for more clarity in terms of the coverage of tariffs with respect to product line, countries and the situation with respect to the already existing tariffs of 25% on steel, under Section 232," said Abhyuday Jindal, the managing director of JSL said in a statement to Moneycontrol.
On February 10, United States President Donald Trump had signed an order, enforcing a 25 percent tariffs on all steel and aluminium imports into America.
Read More: Metal prices to melt further on Trump’s fresh tariff levy
The stainless steel manufacturer primarily exports to Europe and the United States, but is now expanding into Japan, Southeast Asia, and the Middle East, in order to offset declining export volumes due to weakening demand and geopolitical worries. During Q3FY25, exports contributed only 8 per cent to Jindal Stainless' sales.
Read More: Donald Trump’s eye-for-eye tariff threat puts India at risk
"US is around 20% of our export. I would say despite any further major change in Trump tariffs, I think this will still continue. I don't see much dip happening, and the other positive side with US is that they will also come with a lot of capex expenditure, from infra spending to other areas where we, as a company, can cater to them quite efficiently," Jindal had said at a post-earnings call with analysts last month.
The United States' action to impose a 25 percent tariff on all steel and aluminium imports can impact Indian steel and metal manufacturers too, even though India is not a large exporter of primary metals to the US, analysts have said. Indian manufacturers will feel the impact if excess global capacity from countries such as China and South Korea is redirected towards markets such as India, which may further weaken the pricing power of Indian steel mills, said industry experts.
Read More: 10 countries, including India, most affected by Trump’s steel and aluminium tariffs
"Many companies, including ours, share long-standing relationships with American business partners, built on mutual trust, respect, and shared goals. Our solutions are met with immense respect and recognition. We look forward to further strengthening these ties in the years ahead," Jindal said, adding that US remains a cornerstone of JSL's global customer base.
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