By Neha Arora
(Reuters) – India’s steel industry will not see much direct impact from U.S. tariffs, but the European Union’s carbon tax will affect steel exports, the country’s steel secretary Sandeep Poundrik said at the FT Live Energy Transition Summit India on Wednesday.
Roughly two-thirds of India’s steel exports go to Europe, while exports to the U.S. are negligible.
India has sought an exemption from the carbon border adjustment mechanism (CBAM), which could impose a higher tax on imports of high-carbon goods, including steel, aluminium and cement.
“The limits of carbon emission, which are proposed in CBAM, will definitely impact the exports,” Poundrik said.
Indian steel is predominantly produced using blast furnaces, where emissions are high, Poundrik said, adding that further addition of blast furnace capacity is an area of concern.
Poundrik also said that India remains concerned about cheap imports and he expects the government to take a decision on the import tariffs, locally known as safeguard duty, in line with the proposed duty rate.
Last month, the country proposed a three-year import tariff of 11%-12% on some steel products to curb shipments from top producer China.
(Reporting by Neha Arora; Writing by Kashish Tandon; Editing by Eileen Soreng)
Comments