U.S. tariffs expected to benefit Coimbatore units

Foundries in Coimbatore are hopeful that the U.S. tariff on steel and aluminium and increase of import duty by India will not impact demand for castings negatively.

According to industry sources, the medium and large-scale foundries who export will benefit from the U.S. tariffs. Most of them have agreements with the buyers and cost escalations will usually be borne by the U.S. buyers. Hence, the tariffs will not impact the orders or costs.

The micro and small foundries cater to the domestic market. The import duty will apply not only to steel and aluminium, but products made of these too. This may lead to hike in prices by the domestic raw material suppliers. And, it will, in the medium or long term, benefit the foundries.

All these also depend on whether the tariffs will be implemented in the long run.