ENA Sectors 2024-12-03 17:13:35 <p><strong>New Delhi, Dec 3 (KNN)</strong> At a time when Indian steel companies are grappling with declining exports, US President-elect Donald Trump has signalled the possibility of new tariffs on imported steel to protect the American steel industry. </p> <p>On Tuesday, Trump declared his opposition to a potential acquisition of Pennsylvania-based US Steel by Japan's Nippon Steel, asserting that he would block the deal using tariffs and tax incentives to strengthen the American steel sector.</p> <p> I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case, Nippon Steel of Japan, Trump stated. Through a series of tax incentives and tariffs, we will make the U.S. Steel strong and great again, and it will happen FAST!, reported Indian Express.</p> <p>Trumps comments coincide with a challenging period for Indias steel industry. The country is facing a sharp decline in steel exports, while imports have surged by 41 per cent in the first half of the financial year. </p> <p>Exports have fallen by 36 per cent, according to official data, reflecting the intense competition in global markets and a rise in cheaper steel imports.</p> <p>The Indian government is taking steps to address these concerns. The Steel Ministry, after meeting with industry stakeholders, proposed a 25 per cent safeguard duty on certain steel items to shield domestic producers from the growing influx of imports. </p> <p>Despite this, Indian steel companies are struggling with profitability, partly due to international dumping practices that have suppressed prices.</p> <p>Steel Secretary Sandeep Poundrik highlighted the country's increasing steel consumption, which grew by 13 per cent in the first half of 2024-25, driven by a surge in infrastructure and public spending. </p> <p>However, with rising imports, steel companies are seeing their inventory levels soar, and profit margins are under pressure. </p> <p>The industry now faces a dilemma over how to protect domestic producers, especially considering that 62 per cent of imports come from Free Trade Agreement (FTA) countries, where higher duties would have no effect.</p> <p>As Indian steel manufacturers brace for further pressure, international factors, including Trumps tariff rhetoric, threaten to escalate challenges in an already volatile market.</p> <p><strong>(KNN Bureau)</strong></p> 40131 https://knnindia.co.in/news/newsdetails/sectors/indian-steel-industry-grapples-with-declining-exports-as-trump-targets-foreign-steel-investments 2024-12-03 17:13:35 knnindia.co.in