Tata Steel in talks with US customers seeking tariff exemptions

Tata Steel is reworking its export strategy as shifting global trade policies and protectionist measures reshape the metal’s future trade trajectory.

The company is currently engaged in negotiations with its US-based customers to navigate rising tariff pressures on exports from its European operations, particularly the Netherlands – a central node in its transatlantic supply chain, TV Narendran, MD and CEO, Tata Steel, told businessline.

Effective March 12, 2025, the Trump administration has reinstated a 25 per cent tariff on all steel and aluminium imports, a move that can possibly disrupt Tata Steel’s long-established export flow from the IJmuiden plant (in the Netherlands).

The plant exports specialised steel products that are not manufactured domestically in the US.

“Some products we export from the Netherlands to the US aren’t even made there. So our customers and we are looking to see if there are some exemptions for those products,” Narendran said, speaking on the sidelines of an event organised by the AIMA (All India Management Association).

Exports from Europe (and also the UK) to the US, include packaging steels, tubular products for oil and gas, and high-quality steel for construction, automotive, and other industries. These products are often used in manufacturing processes in the US. Packaging steel is one of the key items (and generally not manufactured in the US.)

For instance, Tata Steel operates the UK’s largest steelworks in Port Talbot and exports around $100 million of steel annually to the US; while 10-12-odd per cent of the production from its Netherlands unit is exported to the US.

With the US now enforcing strict “melted and poured” origin rules and refusing country-specific exemptions, Tata Steel has intiated “conversations with American buyers”.

“…otherwise of course the discussion is on how we deal with the tariffs. That is a cost. But the question is how can our customers and I share those tariffs,” Narendran added.

No export from India yet

With India already facing trade actions and logistical hurdles in servicing the US, exporting directly from Indian plants is not a viable workaround.

“When India exports to the US, it already has a lot of trade action against it from the past. And the US is one of the most difficult markets to service in any case because of the fact that if volumes go up (from India), there will be trade action,” he said.

“So we have a good flow from the Netherlands and the UK and we will stick with that,” Narendran added. The steelmaker, however, continues to see “enough opportunity” in the domestic markets for its India operations.

Move to green steel

Green steel making is still evolving in India, as compared to Europe.

According to Narendran, there were concerted policy push towards greener, less carbon emitting steel-making in Europe over a 5-10 year period as compared to India, which is still in the early stages.

The European nations have put in place a policy roadmap and an infrastructure plan; while customers there are willing to buy green steel (by paying more). “All these three need to come together (here),” Narendran said.

In comparison, India’s green steel policy is still evolving — under-discussion; while the infrastructure is “just about being built”. There is customer hesitancy to pay extra for these offerings.

“It will take some time,” the Tata Steel MD said, adding that India is working on initiatives where they will give preference to public procurement of greener steel. “It is a good move. The government is a big buyer of steel – directly or indirectly.”

Published on April 18, 2025