JSW Steel (USA) Inc. sued the U.S. after failing to secure an exemption from the Trump administration's metal tariffs, Bloomberg News reported Aug. 1.
The U.S.-based unit of Indian steelmaker JSW Steel Ltd. said that waivers for steel-slab raw materials were wrongfully rejected by the U.S. Commerce Department, which forced it to pay significant amounts in tariffs.
The lawsuit came less than a year after CEO John Hritz lauded the levies for aiding the company in going ahead with its expansion plan of up to US$1 billion to modernize and expand its U.S. operations.
The expansion was looking to triple steel production at the unit's Texas plant and add a new facility in Ohio.
Bloomberg Intelligence's senior industry analyst Andrew Cosgrove noted that the company was not given exemptions in order to encourage investment in the U.S.
JSW Steel booked a consolidated net profit of 10.08 billion Indian rupees in the first quarter of its fiscal 2020, down 57% year on year from 23.39 billion rupees, driven by weaker steel demand.