Potential Disruption
Indian exporters concerned as Trump doubles tariff on aluminium, steel
This story was originally published at 18:10 IST on 31 May 2025
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NEW DELHI – Indian exporters are concerned after US President Donald Trump doubled tariff on steel and aliuminium, the Federation of Indian Export Organisations said Saturday. Trump raised duty on the metals to 50% late Friday from 25% he had imposed in February.
Exporters have cited potential disruption to India's steel and aluminium exports, particularly in value-added and finished steel products and auto components, FIEO said in press release. "These products are part of India's growing engineering exports, and higher duties could erode our price competitiveness in the American market," the release said quoting FIEO President S.C. Ralhan.
FIEO wants the government to take up the issue of tariff on the metals at bilateral-level talk to ensure that Indian exporters are not at a disadvantage. "FIEO chief also emphasised the need for Indian exporters is to diversify their markets and invest in higher-grade value-added products to mitigate the impact of such protectionist measures," the press release said.
India had already issued a formal notice at the World Trade Organization, signalling its intention to impose retaliatory tariffs on the US goods in response to the earlier 25% tariff levied on steel and aluminium. "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," Global Trade Research Initiative Founder Ajay Srivastava said in a note.
The high tariffs by the US on the metals could also impact the profitability of Indian exporters. India's outbound shipment of aluminium and steel was worth $4.56 billion to the US in 2024-25 (Apr-Mar). End
US$1 = INR 85.58
Reported by Krity Ambey
Edited by Akul Nishant Akhoury
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