Trump's steel tariff plan to have ‘minor' impact on India, says minister

Time of India

3 days ago

Steel minister
HD Kumaraswamy
said on Monday that U.S. President
Donald Trump
's decision to double tariffs on steel and aluminium imports is likely to have a 'minor' impact on India. He said this was because India does not export steel to the United States 'in a big way'.
Kumaraswamy's remarks follow Trump's announcement last week that the United States would increase tariffs on steel imports from 25% to 50%, a move that intensifies
trade tensions
globally and deepens his trade war strategy. Trump made the statement while addressing a rally in Pennsylvania.
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'We are going to be imposing a 25% increase. We're going to bring it from 25% to 50% -- the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States,' Trump said during the rally.
However, a report by the Global Trade Research Initiative (GTRI) has raised concerns over the consequences of the U.S. move. The GTRI said that the impact on India's metal exports could be significant. According to the report, India exported USD 4.56 billion worth of iron, steel, and aluminium products to the United States in the financial year 2025.
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'For India, the consequences are direct. In FY2025, India exported USD 4.56 billion worth of iron, steel, and aluminum products to the US,' GTRI report said.
Of this amount, India exported USD 587.5 million in iron and steel, USD 3.1 billion in articles of iron or steel, and USD 860 million in aluminium and related articles. These products will now face higher import duties in the U.S., which could hurt the competitiveness of Indian exporters.
The 50% steel tariff will come into effect on June 4 and marks another step in Trump's return to aggressive trade policy. The announcement came just hours after Trump accused China of breaking an agreement with the U.S. to reduce tariffs and restrictions on critical minerals.
Trump's tariff increases on steel and aluminium were among the first measures he put in place after returning to office in January. In March, tariffs of 25% on most imported steel and aluminium had already taken effect. At one point, Trump had also threatened a 50% tariff on Canadian steel, but later decided against it.
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According to data from the U.S. Department of Commerce, the United States is the world's largest importer of steel, excluding the European Union. The country imported a total of 26.2 million tonnes of steel in 2024. The higher tariffs are now expected to raise steel prices across sectors, affecting both industry and consumers.