According to the Financial Times, additional US tariffs may cause a slowdown in exports and raise production costs for India’s steel sector, which is already subject to international competition.
Global trade is expected to be disrupted by US President Donald Trump’s announcement of a new 25% tariff on all imports of steel and aluminum. Potential economic disruptions could result from the tariffs, which are anticipated to affect some of the biggest exporters of these metals to the US.
The following 10 nations were the largest suppliers of steel and aluminum to the United States in 2023, according to The Financial Times, and these tariffs are probably going to have the biggest impact on them. Here are the potential effects on each nation and why India, which is ranked eighth, has a lot on the line.
Canada: $25.26 Billion
Canada will be most negatively impacted by the tariffs because it is the biggest exporter of steel and aluminum to the US. It is anticipated that Canadian businesses and policymakers will oppose these restrictions, perhaps requesting exclusions or punitive measures, given the two nations’ robust trading connection.
China: $13.86 Billion
China continues to be one of the US’s largest exporters of steel and aluminum despite current trade concerns. China’s attempts to diversify its export markets may be accelerated by the additional tariffs, which will only increase tension between the two powerful economies.
Mexico: $13.28 Billion
The US supply chain is closely linked with Mexico’s steel and aluminum industries, which are major trading partners under the USMCA (United States-Mexico-Canada Agreement). For businesses that operate in both nations, higher tariffs may cause manufacturing disruptions and raise production costs.
South Korea : $5.71 Billion
If the tariffs raise production costs, South Korea, a significant producer of premium steel used in the auto industry, may encounter significant difficulties. Because US exports are essential to businesses like Hyundai and Kia, the tariffs may compel price increases or changes to manufacturing.
Brazil: $4.87 Billion
Brazil’s steel exports to the US are critical to its economy, and the tariffs could have a ripple effect on its mining and manufacturing sectors. As one of the world’s largest iron ore producers, Brazil might seek new trade alliances to compensate for losses.
Germany: $4.49 Billion
Germany, which produces some of the most cutting-edge steel in the world, is probably going to be severely impacted. Given that its engineering and automotive sectors rely on exports to the US, the tariffs may raise prices for German businesses and impede industrial growth.
Taiwan: $4.38 Billion
Trade flows could be seriously disrupted in Taiwan, a major supplier of aluminum components and specialty steel. Manufacturers on the island may have to find new export markets or pay higher prices.
India: $4 Billion
India will be affected by these tariffs because it is the eighth-largest supplier of steel and aluminum to the United States. Given that India’s steel sector is already up against international competition, increased US tariffs may result in:
- A decline in exports to a major market.
- Higher manufacturing costs for Indian companies that depend on imports from the US.
- More attempts to diversify trade, with India potentially boosting exports to Southeast Asia and Europe.However, if US purchasers search for suppliers other than China and Canada, India may also gain.
Japan: $3.22 Billion
High-tech steel and aluminum goods from Japan are vital to sectors like electronics and the automotive industry. Increased tariffs may raise the cost of Japanese goods on the US market, which might damage exports and decrease demand.
Italy: $2.73 Billion
As one of Europe’s leading steel exporters, Italy’s economy could take a hit if higher tariffs reduce US demand. The European Union may also retaliate with countermeasures, further straining US-EU trade relations.
Now what?
These ten nations are preparing for economic repercussions following Trump’s declaration of a 25% tariff. Some countries, like India, might concentrate on trade diversification and new export tactics, while others might negotiate exclusions or take countermeasures.
The steel and aluminum sector is expected to experience significant realignments in the upcoming months due to changes in global commerce, which will affect producers, customers, and international trade regulations.
