Trump tariffs won't hit steel exports, dumping a concern, says Jindal Stainless MD

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Jindal Stainless sees no substantial impact of the recent tariffs announced by the US, as they will create a level playing field in the exports market, chairman and managing director Abhyuday Jindal has said.

The decision, however, will add to dumping concerns in India, Jindal said.

"We have been facing a 25 percent tariff since 2018, while some countries enjoyed exemptions. Now, with (Donald) Trump announcing tariffs on all imports without exceptions, it will be a level playing field," Jindal said on the sidelines of the launch of India-Greece-Cyprus (IGC) Business & Investment Council.

On February 10, the US President signed an order, enforcing 25 percent tariffs on all steel and aluminium imports into America. There are worries that increased tariffs may divert Chinese and other Asian exports to India adding to competition and creating pressure on domestic prices.

This protectionist move, aimed at safeguarding American industries, has also raised fears of a global trade war, which could adversely affect emerging markets, including India.

Also read: 10 countries, including India, most affected by Trump’s steel and aluminium tariffs

JSL, which is the biggest stainless steel manufacturer in India, exports products such as precision strips and blade steel. Its products find way to the auto industries primarily, supplying steel for tail pipes and fuel tanks.

The stainless steel manufacturer primarily exports to Europe and the US but is now expanding to Japan, Southeast Asia, and the Middle East to offset declining export volumes due to weakening demand and geopolitical worries. In the December quarter, exports contributed only 8 percent to Jindal Stainless' sales.

Jindal dismissed concerns about any impact on the US business, stating that shipments were proceeding as scheduled.

The Indian Stainless Steel Manufacturers, which represent the secondary makers, has urged policymakers to engage in a constructive dialogue to ensure that business like them can continue to contribute to the global economy without facing unjust trade restrictions.