Tough Time For Indian Steel Exporters: Moody’s

New Delhi: Moody’s Ratings on Monday said Indian steel producers will face increased challenges in exporting their products following the US decision to impose an additional 25 per cent tariff on all steel and aluminium imports as announced by President Donald Trump.

Over the past 12 months, high steel imports into India have already dampened prices and earnings of steel producers in India, said Hui Ting Sim, assistant vice-president at Moody’s Ratings. As per think tank Global Trade Research Initiative (GTRI) data, since the trade war began in 2018, US steel and aluminium imports have continued to rise. Primary steel imports increased to $33 billion in 2024 from $31.1 billion in 2018.

The largest suppliers in 2024 were Canada ($7.7 billion), Brazil ($5 billion), and Mexico ($3.3 billion). Imports from China and India were $550 million and $450 million, respectively. “If Trump follows the same playbook, the return of tariffs on steel and aluminium could be used as leverage in trade negotiations. The 2018 tariffs were widely seen as an aggressive strategy to force trading partners into concessions. The latest move, if implemented, could lead to new trade disputes and retaliatory measures from affected countries,” GTRI Founder Ajay Srivastava said.

Moody’s said it expects the tariffs will benefit steel producers in the US by increasing demand for domestic steel and raising their selling prices.

Trump on Sunday said he will announce the new tariffs for steel and aluminium imports on Monday.