How Trump's tariffs on metal imports could hurt India
What's the story
US President Donald Trump has announced he will double tariffs on steel and aluminum imports from 25% to a whopping 50%.
The new tariffs shall come into effect from June 4. The move is part of Trump's strategy to protect American industries and jobs.
However, this could have a major impact on India's metal exports, which are worth $4.56 billion.
Export impact
Metal exports to the US under threat
According to a report by the Global Trade Research Initiative (GTRI), Trump's revised tariffs will significantly affect India's metal exports.
In FY2025, India exported $4.56 billion worth of steel, iron, and aluminum products to the US.
This comprised $587.5 million in iron and steel, $3.1 billion in products of iron or steel, and $860 million in aluminum and related articles.
Price surge
New tariffs could raise US steel prices
The GTRI report further noted that the new tariffs could push US steel prices above $1,180 per ton. This would increase costs for key industries such as automobiles, construction and manufacturing. The move comes after Trump had earlier this year raised aluminum tariffs to 25%.
Diplomatic fallout
India's response and potential retaliation
In response to the tariffs, India has issued a notice to the World Trade Organization (WTO) and is expected to take further action.
The GTRI report raised concerns over the environmental impact of these tariffs, as steel and aluminum production are among the most carbon-intensive industries globally.
Other major economies are investing in green steel and aluminum technologies, but Trump's decision lacks any climate conditions.
Trade tensions
Tariffs could complicate US-India trade agreement negotiations
The new tariffs could also complicate ongoing trade agreement negotiations between India and the US.
Pankaj Chadha, Chairman of trade body EEPC India told The Indian Express, "It's unfortunate that while bilateral trade agreement (BTA) negotiations are ongoing such unilateral tariff hikes are being introduced."
He claimed this would definitely impact engineering exports which currently stand at roughly $5 billion under this category.