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US Tariffs: India Awaits Policy Clarity
21 Feb
Summary
- US tariff reductions on Indian goods are confirmed, pending policy details.
- Downstream industries, not steel itself, face potential tariff impacts.
- India-US trade deal talks are reportedly on track despite uncertainties.
US tariff reductions on Indian goods are confirmed, with a 10% rate now specified. However, companies are awaiting detailed policy clarifications before assessing the long-term effects, stated Tata Steel Managing Director TV Narendran. The steel sector itself is not directly impacted, but industries like auto component manufacturers that export to the US could experience changes.
Narendran highlighted the operational challenges of global manufacturing, emphasizing that supply chains require significant time to adjust to policy changes. Shipments to the US can take one to two months, limiting immediate corporate responses. Therefore, uncertainty remains the primary takeaway for businesses currently.
Despite these tariff-related uncertainties, discussions for the broader India-US trade agreement are reportedly on track. Narendran indicated that negotiations have been detailed and extensive, suggesting the process is likely to continue as planned. The market capitalization of Tata Steel is currently ₹2,59,967.69 crore, with its stock gaining over 47% in the past year.
