Trump’s Tariff Hike Causes Indian Steel Exports To Plunge By 42 Per Cent But Aluminium Sees Heavy Growth 

The duty hikes on the import of steel and aluminium products by the Donald Trump administration have begun to take their toll on Indian steel exports which plunged 42 per cent in the first quarter of the present financial year, Livemint has reported.

These tariff hikes were imposed for the ostensible reason of national security. However in a surprising development, while steel exports witnessed a rapid fall, there was a surge in aluminium exports from India to the United States to the tune of 59 per cent.

It is speculated that Indian aluminium products have a comparative advantage over their counterparts from Canada, Mexico and China in terms of the costs post hike in tariffs. Exports of 68 steel items subject to 25 per cent hike in duty stood at $115 million while seven aluminium items facing 10 per cent hike registered exports of $164 million in the April-June quarter.

Indian officials are in talks with their American counterparts on a waiver for India in respect of the duty hikes announced by the Trump Administration. Efforts are also afoot to conclude a trade package between the two countries which would also include a suspension of the review of India’s benefiting from the generalised system of preferences.