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US aluminium tariff hike unlikely to impact India directly

Donald Trump has last week signed two proclamations that imposed 25% tariff on imported steel and 10% on aluminium, a move that is likely to foment a global trade war.

business Updated: Mar 11, 2018 14:42 IST
Press Trust of India
Press Trust of India
Press Trust of India, New Delhi
US tariff hike,Aluminium,Aluminium tariff hike
An employee cuts into an aluminium roll at the Constellium factory in the eastern French city of Biesheim. (AFP File Photo)

The US move to impose tariffs on aluminium imports may not have considerable direct impact on Indian metal industry, aluminium manufacturers said.

The US decision to impose 10% tariff on imported aluminium may not have significant direct impact on Indian aluminium industry, but it may have resultant impact due to increased availability of export volume for ex-America global market, Aluminium Association of India chairman TK Chand told PTI.

Chand is also the chairman and managing director of Aluminium major Nalco.

Vedanta Ltd, which is also a leading aluminium producer, said the company exports around 5%, which is around 1,00,000 tonnes of its aluminium volumes, to the US market, hence the duties are not a game changer for it.

“Moreover, the market prices will adjust accordingly with higher premiums to reflect the higher cost of supply due to the 10% duties,” Vedanta Ltd Chief Sales & Marketing Officer (Global Aluminium Business) Jean-Baptiste Lucas told PTI.

“But, we obviously regret such unilateral decision in breach of WTO rules on a fast growing market, which will continue to be a large net importer of aluminium -- these additional costs will put an extra burden on our US customers that will ultimately make them uncompetitive,” Lucas added.

Trump has last week signed two proclamations that imposed 25% tariff on imported steel and 10% on aluminium, a move that is likely to foment a global trade war.

First Published: Mar 11, 2018 14:33 IST