- Tata Steel will not change plans despite recent shifts in US tariff policy
- US Supreme Court struck down previous tariffs, leading to a flat 10% import charge
- Narendran said steel firms can't base decisions on short-term policy changes
Tata Steel Ltd. said it will not alter its business or investment plans despite recent shifts in US tariff policy, as the company waits for clarity on how the measures will evolve.
“Tariffs and taxes are changing quite rapidly,” TV Narendran, managing director and chief executive officer of Tata Steel Ltd., said. “I don't think any company is going to change plans looking at this situation,” he told NDTV Profit in an interaction. “Because you don't know what's going to happen in the next few days.”
Narendran was responding to a series of policy moves in the US that have altered import duties in recent months. The US Supreme Court struck down a broad set of tariffs announced earlier by the administration, reshaping the trade landscape after a period of escalating measures.
Policy volatility
The tariff regime had seen multiple revisions, including an initial levy 25%, a subsequent increase to 50% and later adjustments tied to 18% after broader trade discussions. Following the court ruling, the administration introduced a flat 10% import charge that now applies across countries.
Narendran said companies in capital-intensive sectors such as steel cannot take long-term decisions based on short-term policy changes. “For manufacturing sector, you can't take decisions based on daily announcements,” he said.
He added that the recent developments do not affect the ongoing trade engagement between India and the US. “From India's economic point of view, India and US are having a trade deal, that's positive,” he said. “This isn't impacting the deal anyway.”
Focus On Operations
Tata Steel operates across India, Europe and other global markets, and assesses trade policy changes as part of its regular risk management processes. Narendran indicated that while the company continues to monitor developments in the US, it has not initiated any change in capital allocation, production strategy or export plans in response to the tariff shifts.
He also suggested that limits on executive discretion in imposing tariffs could contribute to greater predictability in trade policy over time. “The larger point is the President will have less flexibility to impose tariffs,” Narendran said. “This will lead to much more stability.”
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