Trump Tariffs Threaten India’s $4.56B Metal Exports: GTRI

Trump’s New Tariffs Threaten India’s $4.56 Billion Metal Exports: GTRI Report

In a move that could disrupt global trade flows, former U.S. President Donald Trump has announced a doubling of tariffs on steel and aluminium imports, a decision that directly threatens India’s USD 4.56 billion worth of metal exports to the United States.

According to a report released by the Global Trade Research Initiative (GTRI), these revised tariffs—set to take effect on June 4, 2025—are expected to make Indian products significantly more expensive in the U.S. market, potentially eroding their competitiveness.

India’s Export Exposure: A Sector at Risk

The United States has long been one of the key destinations for Indian metal exports. In FY2025, India shipped a total of USD 4.56 billion worth of iron, steel, and aluminium products to the U.S. This includes:

USD 587.5 million in iron and steel
USD 3.1 billion in articles of iron or steel
USD 860 million in aluminium and related articles

These items are now facing sharply higher import tariffs, making it difficult for Indian exporters to remain price competitive.

Trump’s Tariff Hike: What’s Changing?

Trump announced on May 30, 2025, that the U.S. would raise existing tariffs on steel and aluminium from 25% to 50%, citing national security concerns under Section 232 of the U.S. Trade Expansion Act of 1962.

This provision allows the U.S. president to impose trade restrictions if imports are deemed a threat to national security. Trump originally used this clause in 2018 to impose a 25% tariff on steel and 10% on aluminium. The February 2025 hike already raised aluminium duties to 25%, and now both categories face a steep 50% tariff.

Economic Impact: U.S. Prices and Global Trade

According to the GTRI, the immediate impact of these new tariffs will be felt in rising steel prices in the U.S., projected to climb above USD 1,180 per tonne. This increase will likely affect several major industries, including:

Automobiles
Construction
Manufacturing

Higher input costs could also lead to price inflation and supply chain disruptions within the U.S. economy.

India’s WTO Response and Diplomatic Pushback

India has already notified the World Trade Organization (WTO) about these measures and is expected to pursue further diplomatic and legal actions to safeguard its export interests.

This isn’t the first time India has contested trade decisions by the U.S. under Trump’s leadership, but the sheer scale of impact this time could trigger broader trade discussions or retaliatory measures.

Environmental Concerns: A Step Backwards?

Beyond economics, the GTRI report raised environmental concerns over the Trump administration’s policy. Steel and aluminium production are among the most carbon-intensive industries, and while countries like India and those in the EU are investing in green steel and low-carbon technologies, the U.S. tariff move lacks any environmental consideration.

The GTRI noted that this action reflects a trend of economic nationalism taking priority over climate responsibility, raising questions about the U.S.’s commitment to global sustainability goals.

The Trump administration’s decision to hike tariffs on metal imports is poised to impact not only India’s export revenues but also reshape global trade dynamics. With USD 4.56 billion in exports at risk, India faces a significant challenge in maintaining its trade momentum with the U.S. As the world moves toward green industry and fair trade, such unilateral tariff actions—without multilateral consultation or climate provisions—signal a potentially protectionist shift in U.S. trade policy. India’s response at the WTO and future bilateral negotiations will be key in mitigating these impacts.

US Trade Court Blocks Trump’s Sweeping Tariffs: What Happens Next?

📄 This content was originally published on economictimes on 2025-05-31. Read the original article here: https://economictimes.indiatimes.com/news/economy/foreign-trade/trumps-revised-tariffs-on-steel-and-aluminium-threaten-indias-usd-4-56-billion-exports-to-us-gtri/articleshow/121531641.cms?from=mdr