Donald Trump raised tariffs on steel and aluminum imports into the United States from 25% to 50%. This could significantly harm India's ₹38,000 crore (approximately $4.56 billion) metal export industry. The Indian government has notified the WTO.
Trump Tariff: Former US President Donald Trump recently doubled tariffs on steel and aluminum imports, potentially delivering a major blow to India. According to a report by the Global Trade Research Initiative (GTRI), this decision could impact approximately ₹38,000 crore (approximately $4.56 billion) worth of Indian metal exports. This news has sent ripples through the business world, and everyone is now keenly observing the Indian government's next strategy.
What is Donald Trump's new decision?
On May 30, 2025, Donald Trump announced that tariffs on steel and aluminum imports into the United States would increase from 25% to 50%. This new rule came into effect on June 4, 2025. Trump justified this decision by stating that it was necessary to strengthen America's "national security." He believes this step is essential for protecting domestic industries and employment.
What will be the impact on India?
India exported approximately $4.56 billion worth of steel and aluminum-related products to the US in fiscal year 2025. This includes $587.5 million worth of iron and steel, $3.1 billion worth of iron or steel-based goods, and $860 million worth of aluminum products. With the 50% tariff imposed by the US, Indian products will become more expensive in the American market.
This will weaken the competitiveness of Indian companies and could lead to a decline in exports. This is particularly concerning for companies that consider the United States their primary market.
The Indian government's response
The Indian government has informed the World Trade Organization (WTO) about this decision and is reportedly formulating a counter-strategy. India has begun considering all options to protect its interests, including filing a complaint with the WTO and making changes to its trade policies. Experts believe the government needs to develop a robust strategy quickly to safeguard the Indian metal sector from the impact of this decision.
What did the GTRI report say?
The Global Trade Research Initiative (GTRI) has described this decision as not only harmful to trade but also detrimental to the environment. The production of steel and aluminum involves significant carbon emissions. At a time when the world is moving towards green technology and clean energy, Trump's move could negatively impact global climate change goals. The GTRI believes that America's "America First" approach, or economic nationalism, is a cause for concern for both trade cooperation and environmental protection.
