India’s Steel Exports To US Likely To Rise As China Faces Tariff Wall

NEW DELHI, (IANS) – With US President Joe Biden announcing a steep hike in tariffs on $18 billion worth of Chinese goods, an opportunity has opened for India to increase its exports of items such as steel and aluminum as well as medical goods such as facemasks, PPE, syringes & needles, and gloves to the American market, according to industry experts and market analysts.

The opportunity for India comes in the backdrop of the strengthening of bilateral economic ties between the two countries.

India and the US had decided to end all bilateral trade disputes that were pending at the World Trade Organization in 2023.

Following this, the US agreed to withdraw the 25 percent and 10 percent import duties on certain steel and aluminum products respectively, that had been earlier imposed “on grounds of national security”. India had reciprocated by withdrawing its retaliatory duties on American products such as chickpeas, lentils, almonds, and walnuts.

After the trade disputes were settled the US subsequently agreed to allow the import of 3,36,000 tons of steel and aluminum from India with the waiver of additional duties that were imposed under a national security law by the erstwhile Donald Trump administration in 2018.

However, at the same time, there are concerns in the steel sector that China, which has excess capacity, may resort to dumping its steel output in other markets, including India.