**Bengaluru’s Steel Industry Faces Mixed Reactions to U.S. Tariffs**
In a dusty suburb of Bengaluru, rows of small factories are busy transforming Indian-made steel into a variety of products, from car parts to kitchen sinks. The recent announcement by U.S. President Trump to impose high tariffs on steel imports has garnered some unexpected support among local industry workers and experts. Many anticipate that these tariffs will lead to an influx of cheap steel in markets like India, as the 25% tariff makes it less viable for companies in countries such as China and South Korea to export to the U.S.
B. Praveen, from Sun Techpro Engineering, which manufactures products from steel sheets, believes that his already thin profit margins may improve as the cost of steel decreases. “For thousands of companies like mine, this can be a good thing,” he stated. Businesses like Praveen’s employ over 200 million people in India and play a crucial role in the nation’s economy.
However, the prospect of cheaper steel is not universally welcomed. Naveen Jindal, president of the Indian Steel Association, expressed his deep concerns, noting that India is one of the few major markets without trade restrictions, making it vulnerable to potential steel dumping. Increased competition could hinder India’s efforts to produce steel in a more environmentally friendly manner. Currently, the steel production process in India is associated with high levels of greenhouse gas emissions, contributing significantly to climate change. Efforts to reduce emissions may be compromised in the pursuit of maintaining profitability.
India’s steel industry is substantial and heavily polluting, with projections indicating continued growth. As the world’s most populous nation and one of the fastest-growing major economies, India is experiencing a surge in steel demand driven by rapid urbanization and infrastructure development. The government anticipates that steel production will rise from 120 million tons to 300 million tons within the next five years. According to the Global Energy Monitor, steelmaking accounts for up to 12% of India’s greenhouse gas emissions, a figure that could potentially double if production increases as planned.
Henna Khadeeja, a research analyst with GEM, pointed out that unlike their counterparts in China, Europe, or the United States, Indian steelmakers predominantly rely on coal-based blast furnaces, which are more polluting. In September of the previous year, the Indian government announced a $1.72 billion investment to assist the steel industry in transitioning to cleaner production methods. However, Khadeeja noted that the new expansion plans primarily focus on coal-based facilities. “Currently, the emphasis is on maximizing steel production. The strategy appears to be to retroactively decarbonize once the capacity is established,” she explained.
