India’s metal exports to the US, valued at $4.56 billion in FY25, are set to take a hit as former US President Donald Trump moves to raise tariffs on steel and aluminium imports to 50%. The revised rates, up from 25%, will come into effect from June 4, 2025, under Section 232 of the US Trade Expansion Act of 1962. The law allows such action on national security grounds. According to the Global Trade Research Initiative (GTRI), this will significantly reduce the price competitiveness of Indian products in one of their key markets. The affected categories include $3.1 billion worth of finished articles made of iron or steel, $860 million in aluminium and related products, and $587.5 million in raw iron and steel exports.
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Impact on US prices and sectors
The tariff increase is expected to drive steel prices in the US to over $1,180 per tonne. This could impact downstream sectors such as automobiles, construction, and heavy manufacturing, which rely heavily on imported metal products.
India has formally notified the World Trade Organisation (WTO) of the tariff changes and may explore countermeasures. The move revives concerns last raised in 2018 when Trump first implemented a 25% tariff on steel and a 10% tariff on aluminium. Earlier in February 2025, aluminium tariffs had already been raised to 25%.
Environmental concerns and trade nationalism
The GTRI has also raised environmental concerns. Steel and aluminium are among the most carbon-intensive materials to produce, yet the revised tariffs contain no conditions related to sustainable production.
This omission is viewed as a shift away from global climate goals in favour of economic protectionism. The report suggests that while many countries are investing in green technologies for industrial production, the US is taking steps that may undermine such progress.
India’s export ecosystem will need to adapt quickly to this policy change, particularly as global trade dynamics continue to be shaped by protectionist strategies and shifting geopolitical interests.
