How the US’s Doubling Tariff on Steel and Aluminium Will Affect Indian Exporters: Insights from GTRI

New Delhi: President Donald Trump recently announced a significant increase in tariffs on imported steel and aluminum, doubling the current rates. Starting June 4, the tariff on steel will rise from 25% to 50%. This move is expected to hit Indian exporters hard, according to analysts from the Global Trade Research Initiative (GTRI).

Trump’s decision falls under Section 232 of the US Trade Expansion Act of 1962. This law gives the president the authority to impose tariffs if imports threaten national security. In 2018, Trump used this provision to implement the initial tariffs of 25% on steel and 10% on aluminum, later increasing the aluminum tariffs to 25% in February 2025.

The impact on India could be significant. In the fiscal year 2024-25, Indian exports of iron, steel, and aluminum to the US reached $4.56 billion. This includes $587.5 million in iron and steel, $3.1 billion in finished iron or steel products, and $860 million in aluminum.

Ajay Srivastava, founder of GTRI, expressed concerns about how these new tariffs could threaten the profitability of Indian manufacturers and exporters: "These exports are now exposed to sharply higher US tariffs."

Following previous tariffs, India has already filed a notice with the World Trade Organization (WTO) signaling its intent to respond with retaliatory tariffs on US goods. With the latest hike, the question is whether India will escalate this situation by raising tariffs on select American products in the near future.

In light of these developments, it’s important to consider how global trade dynamics are shifting. Experts believe that increased tariffs can lead to a cycle of retaliation that impacts not just the involved countries but also the global economy. A recent survey by the Peterson Institute for International Economics shows that trade conflicts can slow down economic growth not just for exporters, but also for consumers facing higher prices.

As trade tensions continue to rise, both businesses and consumers need to stay informed about their potential impacts. Observing social media trends, it’s clear that reactions range from concern among exporters to debates about the long-term effects on prices and the economy.

For additional context and to understand tariffs’ broader implications, read more from credible sources like the World Trade Organization or the U.S. Trade Representative.

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US PRESIDENT DONALD TRUMP, DOUBLE TARIFFS, IMPORTED STEEL AND ALUMINIUM, GTRI, INDIAN EXPORTERS AFFECTED, DOUBLING TARIFF ON STEEL, ALUMINIUM BY US TO IMPACT INDIAN EXPORTERS: GTRI