Kolkata is a major hub for India's steel foundries exporting sanitary castings, where work has slowed or stopped. Some owners discuss distress privately while remaining publicly silent, leaving workers confused. Vijay Shankar Beriwal of Calcutta Iron Udyog blames a 50% tariff on steel and aluminum imposed in June under Section 232 of the Trade Expansion Act of 1962. Additional 25% reciprocal tariffs on most Indian goods and a proposed 25% tariff over Russian oil purchases have compounded the impact. Existing US orders are being cleared quickly, new orders are scarce, and many foundries have halted production. India exported $4.56 billion in iron, steel, and aluminium products to the US last year, and the foundry sector employs over 200,000 workers across more than 5,000 units, with over 95% categorized as small-scale.
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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