New Delhi, India will become more vulnerable to low-cost steel imports as countries impacted by the US’ tariff move may divert their shipments to the domestic market, industry body ISSDA said on Thursday.

President Donald Trump on Wednesday announced reciprocal tariffs on about 60 countries in a historic measure to counter higher duties imposed globally on American products.

For India, the US has announced 27 per cent reciprocal tariffs saying New Delhi imposes high import duties on American goods, as the Donald Trump administration aims to reduce the country’s trade deficit and boost manufacturing.

However, autos and auto parts and steel and aluminium articles, already subject to Section 232 tariffs at 25 per cent, announced earlier in Trump’s order on March 26, 2025, are not covered in the latest order.

Reacting to the development, Indian Stainless Steel Development Association said the overall volume of exports to the US remains modest, limiting the direct impact of reciprocal tariffs on India’s stainless steel sector.

“The greater concern, however, lies in the potential trade diversions triggered by such policies. Countries facing US tariffs may redirect their exports to India, leading to an influx of low-cost imports,” ISSDA President Rajamani Krishnamurti said.

This poses a significant challenge to domestic producers, threatening the sustainability and growth of the Indian stainless steel industry, he said.

Krishnamurti said ISSDA has consistently cautioned against these risks, emphasizing that unchecked trade diversions particularly from nations like China and Vietnam could undermine domestic manufacturing and employment in the sector.

He further urged the government to closely monitor import trends, and proactively implement necessary safeguard measures to protect the interests of the Indian stainless steel industry.

This article was generated from an automated news agency feed without modifications to text.