Donald Trump’s steel, aluminum tariff hike to hit $4.56 billion worth of Indian exports: GTRI report
The upcoming hike in US tariffs on steel and aluminium imports, announced by President Donald Trump, is set to impact Indian metal exports worth $4.56 billion, according to a new analysis by the Global Trade Research Initiative (GTRI).Beginning June 4, the higher duties are expected to raise product costs for Indian manufacturers and exporters in the American market, potentially affecting their competitiveness.“For India, the consequences are direct. In FY2025, India exported $4.56 billion worth of iron, steel, and aluminum products to the US,” said GTRI, as quoted by ANI.The US continues to be a key market for India’s metal sector. In FY2025, exports included $587.5 million worth of iron and steel, $3.1 billion in iron or steel products, and $860 million in aluminium and related items. The GTRI report cautions that increased tariffs on these categories will challenge India’s market share and profitability in the US.Trump on Friday announced plans to raise existing tariffs on steel and aluminium imports from 25 per cent to 50 per cent, citing national security concerns under Section 232 of the US Trade Expansion Act of 1962. The legislation enables the US president to impose trade restrictions if certain imports are found to pose a threat to national security.Read more: Donald Trump announces 50% tariff on steel imports from June 4 to ‘secure industry in US’Trump initially invoked this provision in 2018, setting a 25 per cent tariff on steel and 10 per cent on aluminium. These rates were revised in February 2025, with aluminium tariffs raised to 25 per cent.According to GTRI, the latest increase could drive US steel prices above $1,180 per tonne, with ripple effects on key sectors like automotive, construction, and manufacturing.India has filed a notification with the World Trade Organization (WTO) regarding the tariff hike and is exploring additional response measures.GTRI also flagged the environmental implications of the US move. “Steel and aluminium manufacturing are significant carbon emitters globally. While other nations invest in environmentally friendly production methods, the US policy lacks environmental considerations,” the think tank noted.“This decision demonstrates the Trump administration’s preference for economic nationalism over environmental stewardship,” GTRI said, adding that it raises questions about the US commitment to global climate goals and sustainable industrial development.
