Washington DCA few moments ago
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Trump has decided to increase the tariff from 25% to 50% on imports of steel and aluminum.
50% tariff has been implemented in the US from today on imports of steel and aluminum. President Donald Trump has signed the order related to it.
However, he has excluded Britain from this tariff. It will apply only 25% tariffs as before, as talks are already underway between the US and Britain on the trade agreement.
Trump announced on 30 May on 30% on steel and aluminum imports from 25% to 50%. For this, he cited National Security concerns under Section 232 of the US Trade Expansion Act 1962.
If any kind of imports threatens national security, then under this law the US President has the right to impose restrictions on business.
Earlier in February, Trump imposed 25% tariff on steel and aluminum imports.
India will have a direct impact of increase in tariffs
An upcoming increase in tariffs on 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.
Product costs for Indian manufacturers and exporters in the US market are expected to increase, which may affect their competition.
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
The GTRI report warns that the increase in tariffs on these categories will challenge India’s market share and profitability in the US.
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.