Trade War: US President Donald Trump has announced a 25% tariff on steel and aluminum imports from March 12, which has caused a stir in the global trade world. This step has been taken to protect the domestic industries of America from cheap foreign imports. However, this decision can affect the economies of many countries including India, especially at a time when Prime Minister Narendra Modi is going to visit America on February 12-13.
America’s new tariff plan
The Trump administration believes that the US steel and aluminum industries are being harmed by cheap imports, especially due to products coming from China. To stop this, an additional import duty of up to 25% will be imposed. Interestingly, Canada and Mexico have been given a one-month exemption for the time being, indicating that the US is ready to negotiate with some countries, but no such relief has been given to India.
Possible impact on India
India exports steel worth about $ 3 billion (about Rs 26,250 crore) to the US every year. Although India’s exports are smaller than those of the top five US steel suppliers—Canada, Brazil, Mexico, South Korea and Vietnam—this tariff hike could still hit Indian companies. Aluminium exports will also be affected, and if the US raises duties on other metal products in the future, it could create further problems for India.
Bank Closed tomorrow 11 February, RBI announced holiday in this state