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Tariffs

US Tariffs on Steel and Aluminium to Hit Indian Exports Worth $4.56 Billion

Strategic Insights

— 1 min read

The United States plans to increase tariffs on steel and aluminium imports from 25 per cent to 50 per cent, affecting India's metal exports worth $4.56 billion, according to a study by the Global Trade Research Initiative. The hike, set to take effect on June 4, will raise product costs for Indian manufacturers and exporters in the US market, potentially impacting their competitiveness in key sectors such as automotive, construction, and manufacturing.

Key Takeaways:

  • The US plans to raise tariffs on steel and aluminium imports from 25 per cent to 50 per cent, citing national security concerns under Section 232 of the US Trade Expansion Act of 1962.
  • Indian metal exports to the US worth $4.56 billion are at risk, with the majority coming from iron, steel, and aluminium products.
  • In FY2025, India exported $587.5 million worth of iron and steel, $3.1 billion in iron or steel products, and $860 million in aluminium and related items to the US.
  • The tariff hike could drive US steel prices above $1,180 per tonne, affecting key sectors like automotive, construction, and manufacturing.
  • India has filed a notification with the World Trade Organization (WTO) regarding the tariff hike and is exploring additional response measures.
  • The US move lacks environmental considerations, as steel and aluminium manufacturing are significant carbon emitters globally.

Statistics:

  • $4.56 billion: Value of Indian metal exports to the US at risk due to the tariff hike.
  • $587.5 million: Value of Indian iron and steel exports to the US in FY2025.
  • $3.1 billion: Value of Indian iron or steel product exports to the US in FY2025.
  • $860 million: Value of Indian aluminium and related item exports to the US in FY2025.
  • $1,180 per tonne: Potential increase in US steel prices due to the tariff hike.
  • June 4: Date when the higher tariffs on steel and aluminium imports are set to take effect.

Sources:

  • "Trump announces 50% tariff on steel imports from June 4 to 'secure industry in US'" by TOI Business Desk.
  • A study by the Global Trade Research Initiative (GTRI).

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