Trump Doubles Tariffs On Steel, Aluminium Imports. But What Does This Mean For Indian Exporters?

This announcement, made during a rally in West Mifflin, Pennsylvania, is poised to raise costs for Indian manufacturers shipping metal products to the American market.

The GTRI warned that the move would directly impact Indian steel and aluminium exports, which totalled $4.56 billion to the US in 2024-25.

Source : Freepik

Indian exporters of steel and aluminium are bracing for the fallout of a fresh US tariff hike that could significantly erode profitability. On May 30,  US President Donald Trump declared that tariffs on imported steel and aluminium would double to 50 per cent starting June 4.

This announcement, made during a rally in West Mifflin, Pennsylvania, is poised to raise costs for Indian manufacturers shipping metal products to the American market.

“We are going to be imposing a 25 per cent increase. We're going to bring it from 25 per cent to 50 per cent — the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States,” Trump said, while speaking near US Steel’s Mon Valley Works, a symbol of America's industrial heritage.

But What Does It Mean For Indian Exporters?

The Global Trade Research Initiative (GTRI), a prominent trade think tank, flagged the serious implications of the policy shift. The organisation warned that the move would directly impact Indian steel and aluminium exports, which totalled $4.56 billion to the US in 2024-25. Key segments of these exports included $587.5 million in iron and steel, $3.1 billion in articles made from those materials, and $860 million in aluminium and associated products.

According to GTRI founder Ajay Srivastava, this sudden jump in duties will make Indian goods less competitive in the US market and hurt exporter margins. “These exports are now exposed to sharply higher US tariffs, threatening the profitability of Indian producers and exporters,” he stated.

The legal basis for the hike falls under Section 232 of the US Trade Expansion Act of 1962, a statute that enables the president to impose trade restrictions when imports are perceived as national security threats. Trump originally used this provision in 2018 to implement the 25 per cent tariff on steel and a 10 per cent tariff on aluminium, with the aluminium tariff later raised to 25 per cent in February 2025.

India’s Possible Response at the WTO

India has not remained silent in the face of these aggressive trade measures. It has already submitted a formal notice to the World Trade Organisation (WTO), expressing its intent to impose retaliatory tariffs on certain American products in response to the earlier steel levies.

Srivastava noted that with Trump now deciding to double the tariffs, India might follow through with its countermeasures. “It remains to be seen whether India will carry out the retaliation by increasing tariffs on certain US exports within a month,” he added.

The announcement also comes amid Trump’s renewed efforts to reinforce domestic manufacturing, a message he reinforced by praising a recent $14.9 billion deal between Nippon Steel and US Steel. He framed the agreement as a step toward securing American jobs and revitalising the nation’s industrial capacity.

As global trade tensions escalate, Indian exporters may need to reassess their strategies for the US market, especially if retaliatory tariffs do not materialise quickly. The months ahead could prove challenging for India’s steel and aluminium sector, with market access and profitability now facing serious headwinds.