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First Post
6 hours ago
- Business
- First Post
Trump's tariff hike on steel and aluminium likely to hit Indian exporters, say experts
US President Donald Trump's announcement to double tariffs on imported steel and aluminium will impact Indian exporters, particularly those engaged in valueadded and finished steel products and autocomponents, experts say. read more Experts warn that US President Donald Trump's decision to double tariffs on steel and aluminium imports could significantly affect Indian exporters, especially those dealing in finished steel products and auto components. The move has raised concerns among trade analysts, who urge the government to address the issue directly with US officials through diplomatic channels. On May 30, Trump declared that existing tariffs would be doubled starting June 4. This decision falls under Section 232 of the US Trade Expansion Act of 1962, a statute that empowers the president to impose trade barriers if imports are considered a threat to national security. STORY CONTINUES BELOW THIS AD Trump initially used this legal provision in 2018 to impose a 25% tariff on steel and 10% on aluminium imports. The aluminium tariff was increased to 25% in February 2025. According to the Global Trade Research Initiative (GTRI), India will feel the impact of these changes directly. In the fiscal year 2024–25, India exported $4.56 billion worth of iron, steel, and aluminium-related goods to the United States. These included $587.5 million in raw iron and steel, $3.1 billion in value-added iron or steel products, and $860 million in aluminium and related items. 'These exports are now exposed to sharply higher US tariffs, threatening the profitability of Indian producers and exporters,' GTRI founder Ajay Srivastava said. India has already issued a formal notice at the World Trade Organization (WTO) signalling its intention to impose retaliatory tariffs on US goods in response to the earlier steel tariffs. 'With Trump now doubling the tariffs, it remains to be seen whether India will carry out the retaliation by increasing tariffs on certain US exports within a month,' he said. The Federation of Indian Export Organisations (FIEO) President S C Ralhan said the proposed increase in import duty will have a significant bearing on India's steel exports, especially in semi-finished and finished categories like stainless steel pipes, structural steel components, and automotive steel parts. STORY CONTINUES BELOW THIS AD 'These products are part of India's growing engineering exports, and higher duties could erode our price competitiveness in the American market,' he said. The US is among the top destinations for Indian steel manufacturers, who have been gradually increasing market share through high-quality production and competitive pricing. 'Such sharp increases in tariffs send discouraging signals to global trade and manufacturing supply chains. We urge the government to take up the issue at the bilateral level to ensure that Indian exporters are not unfairly disadvantaged… as 25 per cent additional duty will be a huge burden, which is difficult to be absorbed by the exporter/importer,' Ralhan said. The FIEO chief also emphasised on the need for Indian exporters to diversify their markets and invest in higher-grade value-added products to mitigate the impact of such protectionist measures. With inputs from agencies
India.com
7 hours ago
- Business
- India.com
Donald Trump's latest move to cost India Rs 38000000000 due to..., Modi govt preparing to retaliate by...
(File) Trump tariffs: In his latest round of tariffs, US President Donald Trump has doubled import duties on steel and aluminum, a move that could have major impact on India's metal exports. As per a report by the Global Trade Research Initiative, Trump's imposition of double tariffs on steel and aluminum exports, could negatively impact India's metal exports worth $4.56 billion (around Rs 38,000 crore) to the US. Trump tariffs to impact India's $4.56 billion metal exports to US As per official data, India exports metals, including steel and aluminum-related goods, worth a total of $4.56 billion to the United States in FY2025, $587.5 million worth of iron and steel, $3.1 billion in iron or steel products, and $860 million of aluminum and related products. However, after Trump's latest tariff announcement, these Indian goods will have to pay and additional 50 percent import tax, which will make them more expensive in the US markets, thus impacting the competitiveness of Indian firms, whose businesses are likely to take a hit as local firm will outsell them. Trump tariffs pose environmental threat The GTRI report warns that Trump's are not only a threat to global trade, but also the environment, because the manufacture and smelting of metals like steel and aluminum generates massive amounts of toxic gases like carbon dioxide, and its derivative gases. However, according to experts, Donald Trump, who has openly denied climate change and global warning on several occasions, does not seem to care about these environmental issues, and is vehemently prioritising his 'America First' policy, part of which aims to bring back manufacturing to the US. How India is responding? According to media reports, India has approached the World Trade Organization (WTO) against Donald Trump's latest tariffs, and is believed that the Prime Minister Narendra Modi-led government is mulling to impose retaliatory tariffs in response. On Saturday, Donald Trump, citing 'national security' issues, raised the tariffs on steel and aluminum imports into the US from 25 percent to 50 percent. The new tariffs will come into effect from June 4, 2025.
The Hindu
11 hours ago
- Business
- The Hindu
Doubling tariff on steel, aluminium by U.S. to impact Indian exporters: GTRI
'U.S. President Donald Trump's announcement to double tariffs on imported steel and aluminium will impact Indian exporters, as it would hurt their profitability,' think tank Global Trade Research Initiative (GTRI) said on Saturday (May 31, 2025.) On May 30, Mr. Trump announced that he would double the existing 25% tariffs on steel and aluminium imports from June 4. This hike comes under Section 232 of the U.S. Trade Expansion Act of 1962, a law that allows the President to impose tariffs or other trade restrictions if imports are deemed a threat to national security. Mr. Trump originally invoked this provision in 2018 to set the 25% tariff on steel and 10% on aluminium. He raised tariffs on aluminium to 25% in February 2025. 'For India, the consequences are direct,' the (GTRI) said. In 2024-25, India exported $4.56 billion worth of iron, steel, and aluminium products to the U.S., with key categories, including $587.5 million in iron and steel, $3.1 billion in articles of iron or steel and $860 million in aluminium and related articles. "These exports are now exposed to sharply higher U.S. tariffs, threatening the profitability of Indian producers and exporters," GTRI founder Ajay Srivastava said. India has already issued a formal notice at the World Trade Organization (WTO) signalling its intention to impose retaliatory tariffs on U.S. goods in response to the earlier steel tariffs. "With Trump now doubling the tariffs, it remains to be seen whether India will carry out the retaliation by increasing tariffs on certain U.S. exports within a month," he said.
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Business Standard
13 hours ago
- Business
- Business Standard
Doubling tariff on steel, aluminium by US to impact Indian exporters: GTRI
US President Donald Trump's announcement to double tariffs on imported steel and aluminium will impact Indian exporters, as it would hurt their profitability, think tank GTRI said on Saturday. On May 30, Trump announced that he would double the existing 25 per cent tariffs on steel and aluminium imports from June 4. This hike comes under Section 232 of the US Trade Expansion Act of 1962, a law that allows the president to impose tariffs or other trade restrictions if imports are deemed a threat to national security. Trump originally invoked this provision in 2018 to set the 25 per cent tariff on steel and 10 per cent on aluminium. He raised tariffs on aluminium to 25 per cent in February 2025. For India, the consequences are direct, the Global Trade Research Initiative (GTRI) said. In 2024-25, India exported USD 4.56 billion worth of iron, steel, and aluminium products to the US, with key categories, including 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 exports are now exposed to sharply higher US tariffs, threatening the profitability of Indian producers and exporters," GTRI founder Ajay Srivastava said. India has already issued a formal notice at the World Trade Organization (WTO) signalling its intention to impose retaliatory tariffs on US goods in response to the earlier steel tariffs. "With Trump now doubling the tariffs, it remains to be seen whether India will carry out the retaliation by increasing tariffs on certain US exports within a month," he said.
Economic Times
13 hours ago
- Business
- Economic Times
Trump's revised tariffs on steel and aluminium threaten India's USD 4.56 billion exports to US: GTRI
Trump's revised tariffs on steel and aluminium threaten India's USD 4.56 Billion exports to U.S: GTRI Synopsis A Global Trade Research Initiative report warns that U.S. President Trump's decision to double tariffs on steel and aluminium imports, effective June 4, 2025, will significantly impact India's metal exports, valued at USD 4.56 billion. The increased tariffs, raising rates to 50%, are expected to make Indian products less competitive in the U.S. market, potentially harming Indian producers and exporters. US President Donald Trump's decision to double tariffs on steel and aluminium imports is set to impact India's metal exports worth USD 4.56 billion, a report by Global Trade Research Initiative (GTRI) has warned. ADVERTISEMENT The revised tariffs, which will come into effect from June 4, 2025, are likely to hurt Indian producers and exporters by making their products more expensive in the U.S. market. GTRI said "For India, the consequences are direct. In FY2025, India exported USD 4.56 billion worth of iron, steel, and aluminum products to the U.S. According to the GTRI report, the United States has been a major destination for India's metal exports. In FY2025, India exported USD 4.56 billion worth of iron, steel, and aluminium products to the U.S. This included 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 now face sharply higher tariffs, making it difficult for Indian exporters to remain announced on May 30 that the U.S. will raise the existing 25 per cent tariffs on steel and aluminium to 50 per cent, citing national security concerns under Section 232 of the U.S. Trade Expansion Act of 1962. ADVERTISEMENT This law allows the U.S. president to impose trade restrictions if imports are considered a threat to national security. Trump had originally used this provision in 2018 to impose a 25 per cent tariff on steel and 10 per cent on aluminium. Earlier this year, in February 2025, aluminium tariffs were already increased to 25 per cent. ADVERTISEMENT The GTRI report stated that the new tariffs are expected to push U.S. steel prices above USD 1,180 per tonne, increasing costs for key industries like automobiles, construction, and has already issued a notice to the World Trade Organization (WTO) in response to these tariffs and is likely to take further action. ADVERTISEMENT The GTRI also raised concerns about the environmental aspect of this move. Steel and aluminium production are among the most carbon-intensive industries globally. While other major economies are investing in green steel and aluminium technologies, the U.S. decision lacks any climate conditions. The GTRI pointed out that this shows the Trump administration is prioritizing economic nationalism over environmental responsibility, raising questions about America's commitment to global climate goals and sustainable industry development. (You can now subscribe to our Economic Times WhatsApp channel) (Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online. NEXT STORY
