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According to Reuters on February 12, Indian Steel Minister H.D. Kumaraswamy said that India may face as soon as six months as China's import of steel poses a "severe challenge" to Indian domestic producers. Steel from China is subject to temporary tax of 15% to 25%.
India plans to attack China's steel
Kumaraswami declared in an interview with Reuters on the 12th that the growth of China's steel exports "often accompanied by unfair trade behavior", which poses "severe challenges" to Indian steel manufacturers.
He claimed that in order to prevent "unfair competition" and create a "fair market environment", the Indian government is considering imposing a so-called "guarantee tax" of 15% to 25%.
According to Kumaraswami, the standard for setting the tax rate comes from a survey launched by the Indian government in December. Reuters said that once the tax hike is allowed to be implemented, it may last up to two years.
In the fiscal year 2023/24 ended last March, India became a net importer of finished steel. Among them, India imported nearly 2.7 million tons of steel products from China, accounting for 1/3 of India's imported steel, an increase of 91% year-on-year. Between April and December 2024,The volume of finished steel imported by India also hit a record high.
U.S. announces undifferentiated tariff attacks
On February 9, local time, US President Trump said on his way to New Orleans on the Air Force One to watch the Super Bowl game that he plans to announce all steel and aluminum imported to the United States on February 10 local time. A 25% tariff is imposed.
Trump also stressed thatForeign companies cannot acquire American steel companies.But investment can be made.
During his last term, Trump imposed a 25% tariff on imported steel and a 10% tariff on imported aluminum, but later gave tax-free quotas to countries such as Canada, Mexico and Brazil. During Biden's presidency, these quotas were extended to the UK, Japan and the EU.
According to the government and the American Steel Association, the largest sources of steel imports in the United States are Canada, Brazil and Mexico, followed by South Korea and Vietnam. By weight, Canada currently accounts for nearly a quarter of steel imported by U.S. companies, while Mexico accounts for about 12%.
Canada is the largest supplier of primary aluminum metals in the United States, and Mexico is the main supplier of aluminum scrap and aluminum alloys.
Tariffs against China may be raised to 60%
As early as March 2018, after taking office, Trump proposed Article 232, announcing a 25% tariff on imported steel and a 10% tariff on imported aluminum, but North American Free Trade Agreement partners Canada and Mexico were exempted.
Article 301 of the Biden administration in July 2024 announced an additional 10% tariff on steel and aluminum products imported from Mexico from China, and the comprehensive export rate to the United States reached 35%.
Regulations stipulate that steel products from Mexico will face a 25% tariff unless smelted and cast in Mexico, Canada or the United States. Aluminum products from Mexico shall not contain primary aluminum smelted or cast in China, Russia, Belarus or Iran, Otherwise, there will be a 10% tariff.
The United States said the move was to fill loopholes that the government had not resolved before and prevent China and other countries from exporting steel and aluminum products to the United States through Mexico to evade tariffs.Since then, China's direct steel exports to the United States have dropped from 3.5 million tons in 2018 to 890,000 tons in 2024.
On February 10, Trump said he would announce a 25% tariff on steel and aluminum imports in all countries, but did not announce when the tariff policy will take effect. This marks the imposition of 60% tariffs on Chinese steel varieties and the escalation of trade barriers.
