 "Trump’s tariff hike on steel and aluminium likely to hit Indian exporters, say experts")
Experts warn that US President Donald Trump’s decision to double tariffs on steel and aluminium imports could significantly affect Indian exporters, especially those dealing in finished steel products and auto components.
The move has raised concerns among trade analysts, who urge the government to address the issue directly with US officials through diplomatic channels.
On May 30, Trump declared that existing tariffs would be doubled starting June 4. This decision falls under Section 232 of the US Trade Expansion Act of 1962, a statute that empowers the president to impose trade barriers if imports are considered a threat to national security.
Trump initially used this legal provision in 2018 to impose a 25% tariff on steel and 10% on aluminium imports. The aluminium tariff was increased to 25% in February 2025.
According to the Global Trade Research Initiative (GTRI), India will feel the impact of these changes directly. In the fiscal year 2024–25, India exported $4.56 billion worth of iron, steel, and aluminium-related goods to the United States. These included $587.5 million in raw iron and steel, $3.1 billion in value-added iron or steel products, and $860 million in aluminium and related items.
”These exports are now exposed to sharply higher US tariffs, threatening the profitability of Indian producers and exporters,” GTRI founder Ajay Srivastava said.
India has already issued a formal notice at the World Trade Organization (WTO) signalling its intention to impose retaliatory tariffs on US goods in response to the earlier steel tariffs.
Impact Shorts
View All”With Trump now doubling the tariffs, it remains to be seen whether India will carry out the retaliation by increasing tariffs on certain US exports within a month,” he said.
The Federation of Indian Export Organisations (FIEO) President S C Ralhan said the proposed increase in import duty will have a significant bearing on India’s steel exports, especially in semi-finished and finished categories like stainless steel pipes, structural steel components, and automotive steel parts.
”These products are part of India’s growing engineering exports, and higher duties could erode our price competitiveness in the American market,” he said.
The US is among the top destinations for Indian steel manufacturers, who have been gradually increasing market share through high-quality production and competitive pricing.
”Such sharp increases in tariffs send discouraging signals to global trade and manufacturing supply chains. We urge the government to take up the issue at the bilateral level to ensure that Indian exporters are not unfairly disadvantaged… as 25 per cent additional duty will be a huge burden, which is difficult to be absorbed by the exporter/importer,” Ralhan said.
The FIEO chief also emphasised on the need for Indian exporters to diversify their markets and invest in higher-grade value-added products to mitigate the impact of such protectionist measures.
With inputs from agencies
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