India is seeing mixed reactions to U.S new announcement that he is imposing a 50% tariff on all steel and aluminum imports from the country. While the Indian Government sought to play down the new Trump tariffs, with one minister dubbing its impact as “minor,” some analysts, experts and trade bodies are not too sure. Many from this lobby have already expressed concern about the likely fallout of the new wave of tariffs on India’s steel and aluminum sectors.

The Times of India quoted India’s steel minister, H.D. Kumaraswamy, as saying Trump’s new tariff will not be felt much because of India’s limited trade volumes with the U.S. The Minister was basing his comment on the fact that India’s contribution to the U.S. steel imports is far less than those of countries like China, Vietnam, Canada, Mexico, and South Korea. This is the primary argument urging people not to panic about the Trump Tariffs.

However, other experts say the timing could not be worse for India. They claim that the U.S. was emerging as a significant market for Indian steel, aluminum and other commodities, and that the new duties put billions of dollars at risk. The new Trump tariffs come in at 50%, which means Indian shipments could quickly lose their competitive edge. This would deal a serious blow to the country’s metal industry and overall trade relationship with the U.S.

One report quoted Ajay Srivastava, the founder of the Global Trade Research Initiative (GTRI) as saying that the higher tariffs pose a serious risk to Indian exports and could sharply eat into the profitability of manufacturers and exporters.

Some Estimates Put Up to $2 Billion at Risk