NEW DELHI/WASHINGTON, June 1 – India’s steel and aluminium exports may suffer a $1 billion setback as U.S. President Donald Trump considers doubling import tariffs to 50%, escalating trade tensions between the two countries.
The proposed hike, under Section 232 of the U.S. Trade Expansion Act, would double the current 25% duty on metal imports, sparking concern among Indian industry groups and prompting calls for New Delhi to seek exemptions.
“We have barely settled down after the March announcement of sectoral tariffs. How can we do business with such uncertainty?” said Pankaj Chadha, chairman of the Engineering Export Promotion Council (EEPC) India. “The U.S. sources castings, fasteners, holdings, etc. from India. We need to diversify to other markets.”
India exported $4.56 billion worth of iron, steel and aluminium products to the U.S. in fiscal year 2025, according to data from the Global Trade Research Initiative (GTRI). This included:
- $587.5 million in iron and steel
- $3.1 billion in articles of iron or steel
- $860 million in aluminium and related articles
Industry officials say the hardest-hit segments will include stainless steel pipes, structural steel components, and automotive steel parts, which are key components of India’s growing engineering exports.
S.C. Ralhan, president of the Federation of Indian Export Organisations (FIEO), said the proposed duties would significantly erode India’s price competitiveness in the U.S. market. “Such sharp increases in tariffs send discouraging signals to global trade and manufacturing supply chains,” he said, urging the Indian government to raise the issue through diplomatic channels.
The EEPC said it would press the Indian government to negotiate exemptions similar to those granted to the U.K.
Meanwhile, India has notified the World Trade Organization (WTO) of its intention to impose retaliatory tariffs on U.S. goods in response to the earlier steel tariffs. With the latest U.S. move, New Delhi may follow through with countermeasures in the coming weeks.
GTRI data shows that India also imports nearly $2 billion worth of iron, steel, aluminium, and related products from the U.S., making it a candidate for reciprocal trade actions.
U.S. domestic industries may also feel the impact. Steel prices in the U.S. are currently around $984 per tonne, compared to $690 in Europe and $392 in China. Analysts say a doubling of tariffs could push U.S. steel prices to $1,180 per tonne, potentially raising costs for key sectors such as automobiles, construction, and manufacturing.
