The United States will impose a 25 per cent tariff on all steel and aluminium imports along with additional import duties, said President Donald Trump on Monday. The changes will be expected from the last week, and Canada and Mexico are also added to the list.
"Any steel coming into the United States is going to be charged with a 25% tariff," Trump told reporters aboard Air Force One on the way from Florida to New Orleans for the Super Bowl. "Aluminium too." will be on the list, said Trump while giving some information about "reciprocal tariffs.
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"If they are charging us 130 percent and we are charging them nothing, it is not going to stay that way," said Trump.
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Such comments represent Donald Trump's ongoing course of using tariffs both as negotiation tools and means of raising funds for the government deficit. World markets reacted negatively last week following the announcement of the tariffs, with a dip of stock prices after Trump announced reciprocal tariffs.
The Associated Press reported that consumer sentiment was also affected as many Americans feared the tariffs would lead to inflationary pressures. While he provided no further details on tariffs planned for steel and aluminum, or on reciprocal tariffs, Trump noted that he had previously delayed plans to impose a 25% tariff on all imports from Canada and Mexico.
Impact On India
Indian Steel Companies: Corporations such as Tata Steel, JSW Steel, Jindal Steel and Power, SAIL, Jindal Stainless, and NMDC may be impacted.
Trade Relations: India aims at tariff cuts in about a dozen sectors and tariff and trade discussions are expected to be a part of the agenda of a meeting to be held between Modi and Trump.
Global Trade War: The development adds to concerns about a global trade war, especially with China's retaliatory duties on U.S. goods also expected.