Fearing an adverse impact of the US tariff hike on steel, the European Union (EU) has initiated a safeguard probe into certain steel products to assess the effect of increased imports following the Trump administration' step.
In case the safeguard duty is imposed following the investigations, it would have an adverse bearing on Indian exporters who ship steel and its products worth around USD 4 billion annually to the EU market.
The EU has also expressed concerns over diversion of steel shipments to member countries following the tariff hike by the US.
According to an announcement made in the Official Journal of the European Union, "The information currently available to the European Commission, including the surveillance measures in place has revealed that imports of certain steel products have recently increased sharply, showing that there is sufficient evidence that these trends in imports appear to call for safeguards measures".
The commission has therefore decided to initiate a safeguard investigation, it said.
It added that the investigation will examine the situation of the products concerned, including the situation of each of the product categories individually, based on the most recent developments, such as any trade diversion resulting from the US measures.
The US has imposed 25 per cent import duty on certain steel products. The US and Europe are major markets for Indian steel exporters.
India's exports of steel and its products to the US are worth around USD 1 billion, according to the industry estimates.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)