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- GTRI REPORT: Donald Trump’s Steel, Aluminum tariff Hike to Hit $ 4.56 Billion Worth of Indian Exports
New Delhi25 minutes ago
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US President Donald Trump has announced to increase the current tariff on steel and aluminum imports from 25% to 50%.
An upcoming increase in tariffs on US President Donald Trump’s steel and aluminum import is expected to affect Indian metal exports worth $ 4.56 billion, or Rs 39 thousand crore. Global Trade Research Initiative (GTRI) has said this in a new analysis report.
High -duties, which come into force from June 4, are expected to increase product costs for Indian manufacturers and exporters in the US market, which may affect their competition.
India will have a direct impact of increase in tariffs
GTRI said, ‘India will have a direct impact of increase in tariffs. In FY 2025, India has exported iron, steel and aluminum products of a value of $ 4.56 billion to the US.
America remains a major market for the metal sector of India. FY 2025 exports included $ 587.5 million iron and steel, $ 3.1 billion iron and steel products and $ 860 million aluminum and related items.
India’s market share will be challenged in America
The GTRI report warns that the increase in tariffs on these categories will challenge India’s market share and profitability in the US.
Announced to increase the tariff from 25% to 50%
Trump on Friday announced a plan to increase the existing tariff on steel and aluminum imports from 25% to 50% under Section 232 of the US Trade Expensing Act 1962. If some imports are found to pose a threat to national security, this law gives the US President the right to impose trade restrictions.
Trump first implemented this provision in 2018, with 25% tariff on steel and 10% on aluminum. These rates were revised in February 2025, with aluminum tariffs to 25%.
American steel can cost 1 lakh per ton
According to GTRI, the latest increase in tariffs can lead to US steel prices $ 1,180, or about Rs 1 lakh per ton, which will affect major sectors such as automotive, construction and manufacturing. India has filed a notification in the World Trade Organization (WTO) in relation to tariff hike and is searching for additional response majority.
GTRI also expressed concern about environmental effects
GTRI has also expressed concern about the impacts on the environment with the US step. The think tank said, “Steel and aluminum manufacturing lead to carbon emissions at global levels. While other countries invest in Environment Friendly Production Methods, American policy lacks environmental ideas.
GTRI said, “This decision reflects the priority of the Trump administration’s priority to economic nationalism compared to the environmental protection.” At the same time, GTRI also said that it also questions America’s commitment towards global climate goals and sustainable industrial development.