Tata Steel's managing director TV Narendran on Tuesday pitched for safeguard duties on steel imports to protect the domestic steel industry from the indirect impact of US tariff hikes. He said many countries have initiated similar actions on steel imports, pointing out that the last three days have seen Vietnam imposing an anti-dumping duty on Chinese steel imports, and South Korea has also taken a similar decision.
"We are asking for safeguard duties, which can be imposed immediately to help us," Narendran told reporters on the sidelines of the tech industry lobby grouping Nasscom's annual event NTLF here.
After assuming office as the US President last month, Donald Trump ordered a 25 per cent import tax on all steel and aluminium entering the US and ended exemptions given to Canada and European steel earlier.
Narendran said the Indian Steel Association has already made a submission to the government for safeguard duty, and added that it has pitched for a safeguard duty instead of anti-dumping duty because the latter will take time to operationalise.
Not imposing the protection measures for a prolonged period of time can impact the industry's investment plans, Narendran said, adding that margin compression and impact on cash flows can adversely impact capex decisions.
The US tariff has an indirect impact on the steel industry in India, he noted.
"It's not that India is exporting a lot of steel to the US. But, the steel which used to end up in the US will land somewhere else in the world. That will have an impact on India also indirectly," he explained.
He, however, did not share the exact level of duties which the steel industry has sought.
On February 13, Jindal Stainless MD Abhyuday Jindal pressed for a duty of up to 25 per cent on imports to protect domestic manufacturers against a possible dumping of goods into the country
Source Name : Economic Times