NewKerala.com

Key Points

U.S. President Donald Trump has announced a significant increase in tariffs on steel and aluminium imports, doubling the current rates effective June 2025. This move threatens India's significant export market to the U.S., valued at $4.56 billion for iron, steel, and aluminium products. The Global Trade Research Initiative warns this could adversely impact Indian exporters by making their products more expensive and less competitive. Additionally, India's reaction has been to notify the WTO, and there are growing concerns about the environmental implications, as the U.S. overlooks climate commitments in favor of economic nationalism.

Key Points: Trump's Double Tariffs to Hit India’s $4.56B Metal Exports

  • Doubled tariffs effective June 2025 for Indian metals
  • Potential impact on U.S. steel prices and industries
  • India's WTO response likely; concerns over climate initatives
  • U.S. prioritizes economic nationalism over climate goals
2 min read

Trump's revised tariffs on steel and aluminium threaten India's USD 4.56 Billion exports to U.S: GTRI

Trump's new tariffs pose threats to India's $4.56 billion steel and aluminium exports.

"For India, the consequences are direct. - GTRI Report"

New Delhi, May 31

U.S. President Donald Trump's decision to double tariffs on steel and aluminium imports is set to impact India's metal exports worth USD 4.56 billion, a report by Global Trade Research Initiative (GTRI) has warned.

The revised tariffs, which will come into effect from June 4, 2025, are likely to hurt Indian producers and exporters by making their products more expensive in the U.S. market.

GTRI said "For India, the consequences are direct. In FY2025, India exported USD 4.56 billion worth of iron, steel, and aluminum products to the U.S.

According to the GTRI report, the United States has been a major destination for India's metal exports. In FY2025, India exported USD 4.56 billion worth of iron, steel, and aluminium products to the U.S.

This included USD 587.5 million in iron and steel, USD 3.1 billion in articles of iron or steel, and USD 860 million in aluminium and related articles. These products now face sharply higher tariffs, making it difficult for Indian exporters to remain competitive.

Trump announced on May 30 that the U.S. will raise the existing 25 per cent tariffs on steel and aluminium to 50 per cent, citing national security concerns under Section 232 of the U.S. Trade Expansion Act of 1962.

This law allows the U.S. president to impose trade restrictions if imports are considered a threat to national security.

Trump had originally used this provision in 2018 to impose a 25 per cent tariff on steel and 10 per cent on aluminium. Earlier this year, in February 2025, aluminium tariffs were already increased to 25 per cent.

The GTRI report stated that the new tariffs are expected to push U.S. steel prices above USD 1,180 per tonne, increasing costs for key industries like automobiles, construction, and manufacturing.

India has already issued a notice to the World Trade Organization (WTO) in response to these tariffs and is likely to take further action.

The GTRI also raised concerns about the environmental aspect of this move. Steel and aluminium production are among the most carbon-intensive industries globally. While other major economies are investing in green steel and aluminium technologies, the U.S. decision lacks any climate conditions.

The GTRI pointed out that this shows the Trump administration is prioritizing economic nationalism over environmental responsibility, raising questions about America's commitment to global climate goals and sustainable industry development.

- ANI

Share this article:

Reader Comments

R
Rahul K.
This is really concerning for our steel industry workers. Many livelihoods depend on these exports. The government should negotiate better trade terms and maybe look at alternative markets in Asia and Africa. 🇮🇳
P
Priya M.
Why is America always using "national security" as excuse for protectionism? Their own industries can't compete with our quality steel at reasonable prices. Hope WTO takes strong action against this unfair practice.
A
Arjun S.
Time to reduce dependence on US market. We should focus more on domestic consumption and infrastructure projects. Make in India initiative can absorb some of this production if planned properly.
S
Sunita P.
The environmental angle is interesting. While Trump ignores climate concerns, this could be an opportunity for India to position itself as green steel producer and capture European markets with stricter environmental standards.
V
Vikram J.
Maybe we should impose similar tariffs on American agricultural products? Tit-for-tat is the only language Trump understands. Our farmers would benefit from less competition from US imports.
N
Neha R.
While I understand the economic concerns, we must also acknowledge that our steel industry needs modernization. This crisis could push us to invest in better technology and value-added products rather than just raw material exports.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50