Kolkata, India – For the past several years, the US has been a major market for Aditya Garodia to export more than 100 steel derivatives like fasteners like fasteners from factories in West Bengal state of East India.
But US President Donald Trump took over and initially worked in the global market – 25 percent on Steel and Aluminum as well as Standalone Country Tariffs.
Korona Steel Industry Private Limited director Garodia told Al Jaizira that customers have slowed down to pick up their orders as a result of prices, on average, paying for payments in a month, while the business has generally reduced the business because consumers have accepted the wait and the policy.
When June announced that Trump had doubled steel and aluminum prices from June, it was “like a coffin nail”, Garodia said, as about 5 per cent of the per centrent order was canceled. “It is difficult to exploit such high rates in the market.”
He said that the demand for domestic markets has also been low due to the competition of cheap Chinese products, he said, adding that he is dependent on India’s lesser than the opponents.
Last year, India exported iron, steel and aluminum products worth $ 6.56 billion in the United States.
Rates ‘play well in politics’
In his first tenure, Trump raised the rate of 25 per cent on steel in 2018 and 5 percent on aluminum under Section 22 of the trade expansion Act of 62 of the 62 of. But with no rates on the finished products, some businesses managed to escape.
But on February 10, 2022, he declared a 25 percent rate on steel and aluminum with derivatives – or ready -made products and removed all suits.
Ajay Srivastava, the founder of the Global Trade Research Initiative (GTRI) trade research group, told Al Jaizira that the highest rates imposed in 2018 have failed to revive the American steel industry so far.
He said, “Steel imports have increased (US) first implemented in 28,” in 224, “in 224.
As a result, prices in the United States are much higher than Europe or China, “making cars, buildings and machines more expensive. India now needs a clear policy to protect the interest of trade, pressure for proper deals and strengthen home production,” Srivastava said.
The foundries also affected
In the so -called mutual charge announced by President Trump on April 2, he fixed a 26 percent rate for India’s goods. On April 9, he put it for 90 days and presented a 5 percent base rate for interim on all countries, giving them a breathing room to strike personal trade deals with the United States.
Although 10 percent of the business is difficult, the founder – where metal is melted in size – say that any business is 26 percent higher to absorb any business.
India has approximately 5,000,3 founders, of which are for the completion of both domestic and international markets and 5 more exports. Many micro, small and medium enterprises (MSME), in which the exporters provide pig iron, scrap and other items.
The Indian founders export about $ 4 billion products globally, the American market is $ 1.2 billion, said Ravi Sahagal, president of the National Center for Export Promotion (NCEP). In the United States, they compete not only with the local foundry but also with the Chinese and Turkish suppliers.
A set of fresh rates will be a significant shock for the Indian Foundry. Of these, PERCECIALs are more than 65 percent and their raw material suppliers are MSME, “low order will face prices,” Sehgal said. The rates beyond 3-4-14 percent “will be difficult for us to live,” he added.
Due to the uncertainty of the US market, many foundry projects have either been postponed, especially many foundry projects connected to export-trained demands have either been postponed or shelf.
Press small units badly
Kolkata-based producer, 44-year-old Sumit Agarwal, 44-year-old Sumit Agarwal, told Al Jazir that his business was hit hard by prices and he was planning to release some of his 5 emploees staff.
“We are a small unit. After the introduction of the rates, the orders are practically dry, which has made it difficult for us to move on with our existing employees. I am planning to reduce my manpower at least 30-40 percent. The business is only average and the export market has added to our grief.”
Shyam Kumar Podar, who runs a small unit of sheet metal fabrication in Kolkata, recently invested around Rs 800,000 ($ 9,400) to buy a hydraulic press with the aim of growing his business. But the drop in the order has had a bad effect.
“I just bought a machine to grow my business four months ago, but no orders have been received for the last two months.”
“We depend on the exporters for our business because there is already intense competition in the domestic market, but the current situation is hurting small entrepreneurs like us.”
Pankaj Chada, president of the Engineering Export Promotion Council of India (EEPC), told Al Jaizira that the variety of countries like Peru and Chile, which later exported their finished products in the United States, is the only way to live because “could not do business with such a higher charge”.
The 90 -day pause on the rates has ended soon, yet it is not yet clear what the final number would be as India and the United States have not yet fixed the agreement. On Friday, India’s Trade and Industry Minister Piesh Goyal told reporters that while India was ready to sign a trade agreement, “National interest is always the highest“And this will not be run by any time.
Until now, Garodia hopes that a solution can be found. He said, “Can’t survive in any industry,” he said, “he said,” he said, “he said,” he said, “he said,” he said, “he said,” he said, with a lack of manpower as well as high production and raw material costs. ” He said, “India offers a good choice of cheaper workers and low prices,” he said.
