Trump’s tariff hike on metal and aluminium prone to hit Indian exporters, say consultants

Consultants warn that US President Donald Trump’s resolution to double tariffs on metal and aluminium imports may considerably have an effect on Indian exporters, particularly these dealing in completed metal merchandise and auto parts.

The transfer has raised considerations amongst commerce analysts, who urge the federal government to handle the problem straight with US officers via diplomatic channels.

On Might 30, Trump declared that current tariffs can be doubled beginning June 4. This resolution falls beneath Part 232 of the US Commerce Enlargement Act of 1962, a statute that empowers the president to impose commerce boundaries if imports are thought of a risk to nationwide safety.

Trump initially used this authorized provision in 2018 to impose a 25% tariff on metal and 10% on aluminium imports. The aluminium tariff was elevated to 25% in February 2025.

In accordance with the International Commerce Analysis Initiative (GTRI), India will really feel the influence of those adjustments straight. Within the fiscal 12 months 2024–25, India exported $4.56 billion price of iron, metal, and aluminium-related items to the US. These included $587.5 million in uncooked iron and metal, $3.1 billion in value-added iron or metal merchandise, and $860 million in aluminium and associated gadgets.

”These exports are actually uncovered to sharply greater US tariffs, threatening the profitability of Indian producers and exporters,” GTRI founder Ajay Srivastava mentioned.

India has already issued a proper discover on the World Commerce Group (WTO) signalling its intention to impose retaliatory tariffs on US items in response to the sooner metal tariffs.

”With Trump now doubling the tariffs, it stays to be seen whether or not India will perform the retaliation by growing tariffs on sure US exports inside a month,” he mentioned.

The Federation of Indian Export Organisations (FIEO) President S C Ralhan mentioned the proposed enhance in import responsibility can have a big bearing on India’s metal exports, particularly in semi-finished and completed classes like stainless-steel pipes, structural metal parts, and automotive metal components.

”These merchandise are a part of India’s rising engineering exports, and better duties may erode our worth competitiveness within the American market,” he mentioned.

The US is among the many high locations for Indian metal producers, who’ve been step by step growing market share via high-quality manufacturing and aggressive pricing.

”Such sharp will increase in tariffs ship discouraging alerts to world commerce and manufacturing provide chains. We urge the federal government to take up the problem on the bilateral degree to make sure that Indian exporters will not be unfairly deprived… as 25 per cent further responsibility can be an enormous burden, which is tough to be absorbed by the exporter/importer,” Ralhan mentioned.

The FIEO chief additionally emphasised on the necessity for Indian exporters to diversify their markets and spend money on higher-grade value-added merchandise to mitigate the influence of such protectionist measures.

With inputs from companies