Kolkata's foundry sector has slowed or halted production as US trade measures disrupt exports of sanitary castings. A 50% US tariff on steel and aluminum, invoked under Section 232, and 25% reciprocal tariffs on many Indian goods have reduced new orders and accelerated clearance of existing ones. Proposed additional US tariffs tied to India's Russian oil purchases threaten further impact. Eastern India's MSME foundries, largely small-scale, depend heavily on the US market and face acute stress. India exported $4.56 billion in iron, steel, and aluminium products to the US last year, increasing vulnerability to protectionist actions.
He blames the 50% tariff on steel and aluminum imposed by US President Donald Trump, which went into effect in June. Trump cited national security concerns under Section 232 of the US Trade Expansion Act of 1962 for the move. In addition to the steel tariffs, Trump has also imposed 25% "reciprocal tariffs" on most Indian goods. The US president has proposed an additional 25% tariff, set to go into effect later this month, in response to India's purchases of Russian oil.
"The full impact has yet to hit the market, but the stressors have begun to show. Those with existing US orders are clearing them fast, but new orders are slow or absent. Many foundries have stopped work," he says. The 50% steel and aluminum tariff, part of Trump's protectionist trade policies, threatens to choke eastern India's export-driven foundries and medium and small enterprises (MSMEs), which rely heavily on the US market.
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