US Hikes Steel and Aluminium Tariffs to 50%: A Wake-Up Call for India
India exports limited steel and aluminium volumes to the United States yet its domestic manufacturers face new obstacles amid rising global oversupply issues and dumping worries.
US Hikes Steel and Aluminium Tariffs to 50%: A Wake-Up Call for India
The United States President Donald Trump has increased tariffs on steel and aluminium imports by 100 percent and India is paying close attention to these changes. The Trump steel tariffs 2025 increase from 25 per cent to 50% steel and aluminum tariffs will become effective on June 4. The new tariffs intended to protect American industry might impact Indian steelmakers who currently face challenges from increased imports and reduced exports along with escalating global competition.
During FY25 India experienced a 9.2 per cent increase in steel imports reaching 10.5 million tonnes while steel exports decreased by 27 per cent to 6.3 million tonnes resulting in India becoming a net importer for the second consecutive year. The pressure is increasing because global oversupply worries have emerged as a new challenge.
What Exactly Has Trump Announced?
Trump declared a doubling of steel tariffs during his speech at US Steel Mon Valley Works plant in Pittsburgh on May 30. He verified through Truth Social that aluminium tariffs would increase to 50 per cent and both tariff hikes will start on June 4. Trump positioned the initiative as a strategy to protect the steel sector while calling it "a BIG jolt of great news" for American metalworkers.
Trump’s “America First trade agenda" policy remains dedicated to shielding US industries from inexpensive foreign imports.
Understanding the International Significance of This Move and Its Implications for India
US steel prices have increased by 16 per cent following Trump's return to office in January 2025. The price of US domestic steel reached $984 per metric tonne in March which exceeded Europe’s $690 and China’s $392. The US generates most of its domestic steel but continues to purchase steel from Canada, Brazil, Mexico, South Korea and partially from India.
The Bigger Concern: Global Dumping Pressures
The primary concern for India extends beyond reduced sales in the US and relates more to the increased presence of affordable steel in its domestic market. Steel-producing nations such as China and Brazil along with European countries that now face trade war escalation might seek new markets for their surplus steel supplies by exporting to India.
