Steel Trap: MSMEs Caught in Trump's Tariff Tangle

President Donald Trump has announced a 25% tariff on all steel and aluminum imports into the United States, effective today. It is widely predicted that this pronouncement, intended to revive the domestic manufacturing sector, would have profound consequences on micro, small, and medium enterprises (MSMEs) based in India or any other country. Whereas the larger steel manufacturers may not face grave consequences arising from reduced export opportunities for carbon steel, the stainless and industrial steel sectors would be hard hit. The European Union and Canada announced retaliatory measures, with the EU planning countermeasures worth €26 billion ($28 billion) against U.S. goods. Tariffs on steel, aluminum prices increase in steel and aluminum which, in turn, will impact a variety of industries and consumer goods. 

 

Source: Business Standard