Trump's Tariff Hike to Impact India's Metal Exports Significantly

U.S. President Donald Trump has announced a significant increase in tariffs on steel and aluminum imports, a move expected to impact India's metal exports, valued at USD 4.56 billion. The Global Trade Research Initiative (GTRI) highlights that starting June 4, 2025, the revised tariffs will likely inflate the cost of Indian metal products in the U.S. market, challenging the competitiveness of Indian producers and exporters.

The GTRI report specifies that in fiscal year 2025, India exported a substantial amount of iron, steel, and aluminum products to the United States. This includes USD 587.5 million in iron and steel, USD 3.1 billion in articles of iron or steel, and USD 860 million in aluminum and related items. The new tariffs, doubling from 25% to 50%, stem from what Trump cites as national security concerns under Section 232 of the U.S. Trade Expansion Act of 1962.

This legislative move allows for trade restrictions if imports pose a national security threat. Originally employed in 2018 with a 25% steel and 10% aluminum tariff, these rates were already adjusted upward earlier this year. The GTRI warns that U.S. steel prices may surpass USD 1,180 per tonne, increasing costs for key sectors like automobiles and construction. The Indian government has informed the World Trade Organization (WTO) and may pursue further action. Moreover, GTRI criticizes the lack of climate considerations, as this decision seems to sideline environmental concerns in favor of economic nationalism.

(With inputs from agencies.)