US tariff will not have much impact on domestic steel sector: TATA Steel CEO

TV Narendran said the tariff would affect other sectors such as textiles and gems and jewellery.

Tata Steel CEO & Managing Director T V Narendran on Wednesday said the 50 per cent tariff imposed by the US government will not have much impact on the domestic steel sector but the company’s European operations may feel the pinch.

A worker moves rolls of steel at the Tata Steel factory in Velsen-Noord, Netherlands March 26, 2024. (Representative image/REUTERS)

Narendran, however, said the tariff would affect other sectors such as textiles and gems and jewellery.

“The US tariff will not have much direct impact on the domestic steel sector as it does not export steel to them, but Tata Steel's European operation, which exports steel to the US, may feel the pinch as a similar tariff on steel was applicable there too,” he said

Admitting the challenges such as the prevailing market scenario of the world and the US tariff, he said, “Our growth rate is good and domestic demand increasing. Domestic Steel demand was also growing. But we have to be competitive always.”

Narendran said the government has been chalking out a strategy, such as a proposal to bring in reforms in GST, to counter the impact of the 50 per cent US tariff.

Describing the Tata Group as a nation-building group, Narendran said that it is developing the community around its operational areas.

Earlier, he paid homage to the former Chairman Sir Dorabji Tata on his 166th birth anniversary here.

Narendran said that there are lots of leadership lessons to learn from Sir Dorabji Tata.