Tata Steel Likely Immune from Trump’s Tariffs, But MSMEs Linked to Steel Supply May Still Feel the Heat

Trump’s 25% tariff spares Tata Steel India but puts pressure on MSME exporters relying on steel. Can Indian small businesses withstand the global heat?

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In the face of global tariff tremors caused by former U.S. President Donald Trump’s latest move—a sweeping 25% tariff on Indian exports- India’s steel giant, Tata Steel, has made it clear: its Indian operations are largely insulated. However, the ripple effect of this policy could still touch the pulse of India’s MSME sector, which is closely woven into the nation’s steel ecosystem.

In an exclusive interaction with Moneycontrol, Tata Steel CEO T.V. Narendran and CFO Koushik Chatterjee shared a detailed assessment of the company’s exposure to the U.S. tariff policy and its wider implications.

Tata Steel: Immune in India, Cautious in Europe

According to Narendran, Tata Steel does not export steel directly from India to the U.S. As a result, the direct impact on its Indian operations is negligible. Even for Indian MSMEs that manufacture and export steel-based products to the U.S., the downstream impact on Tata Steel’s domestic sales is expected to be limited.

However, the same cannot be said for Tata Steel’s European businesses. In the UK and Netherlands, around 3–4% and 10% of

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