Athira Sethu
Kochi, 7 June 2025
US President Donald Trump raised tariffs on imports of steel and aluminium to 50%. The move doubles the former 25% tariff and is bound to impact most nations, including India. Trump asserted the new tariff would make it more difficult for foreign-made goods to compete against American metal.
The decision is part of Trump’s “America First” agenda and is made ahead of the US election. Although the UK was exempted from the fresh tariffs following negotiations in Paris, India was not.
India exported roughly $4.56 billion worth of steel, aluminium, and products related to these metals to the US during 2024–25. This comprised:
- $587 million worth of iron and steel products
- $3.1 billion of finished iron and steel products
- $860 million worth of aluminium products
Most of these goods are produced in Maharashtra, Gujarat, and Tamil Nadu factories. Several of these are small and medium-sized enterprises that could now incur losses and lay off employees.
Indian steel makers were already facing difficulties because of imports from other nations at lower prices. According to experts, the fresh tariff could worsen the situation. The Aluminium Association of India and Engineering Export Promotion Council cautioned that $5 billion worth of exports could be jeopardized.
India’s government has stated the net effect could be minimal as India is not a significant exporter to the US. However, exports already in transit could be charged 50%, which would harm exporters.
It also poses the risk that other nations, such as South Korea and Vietnam, will export their steel to India. This would cause a cheap metal flood in the Indian marketplace that would detrimentally affect local manufacturers. To avoid this, the Indian government recently imposed a 12% flat steel import tax.
This scenario would bring Indian steel prices down and damage employment in sectors such as construction, automobiles, appliances, and shipbuilding. Indian imports of steel have already increased by 9.2% in 2024–25, and exports have declined by 27%.
Experts suggest that India must attempt to secure an exemption from US tariffs, as was done by the UK, and also shield its own industries from cheap imports. If the situation escalates, it could also result in a trade war between the two nations.
Meanwhile, both US consumers and Indian producers might end up losing.
