US Tariff Hike on Steel and Aluminium Set to Hit Indian Exporters: GTRI

New Delhi, May 31 – Indian metal exporters are bracing for a potential blow to profitability following US President Donald Trump’s announcement to double tariffs on imported steel and aluminium. The move, effective from June 4, could significantly impact India’s exports to the United States, according to trade think tank Global Trade Research Initiative (GTRI).

Trump’s Tariff Hike Under Section 232

On May 30, President Trump declared plans to raise the current tariffs — originally set at 25 per cent on steel and 10 per cent on aluminium – to 50 per cent for both metals. This increase falls under Section 232 of the US Trade Expansion Act of 1962, which permits the US president to impose trade restrictions if imports are considered a threat to national security.

Trump initially imposed these tariffs in 2018 and had already raised the aluminium duty to 25 per cent in February 2025. Now, the fresh escalation targets a broader set of metal imports.

Impact on Indian Exports

GTRI highlighted that the tariff hike will have direct implications for Indian exporters. In FY25, India exported approximately USD 4.56 billion worth of iron, steel, and aluminium products to the US. These included:

• USD 587.5 million in raw iron and steel
• USD 3.1 billion in articles of iron or steel
• USD 860 million in aluminium and related products

“These exports are now exposed to sharply higher US tariffs, threatening the profitability of Indian producers and exporters,” said GTRI founder Ajay Srivastava.

India’s Potential Retaliation at WTO

India had earlier filed a formal notice at the World Trade Organization (WTO), expressing its intent to impose retaliatory tariffs on select US goods in response to the initial steel tariffs.

“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,” Srivastava added.

The situation places Indian exporters in a precarious position, as they await further clarity on trade measures and possible government action to safeguard domestic industry interests.

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. Every effort is made to ensure the accuracy, relevance, and timeliness of the information provided. However, inadvertent errors or omissions may occasionally occur.

Should you have any concerns, queries, or wish to point out any discrepancies in our content, please write to us at content@hdfcsec.com. Your feedback is valuable and helps us maintain the highest standards of content integrity.

Please note that the information shared is intended solely for informational purposes and should not be construed as investment advice. Users are advised to consult their financial advisors before making any investment decisions.