Trump's 50% Slap Has Indian Steel Exporters Worried On Hit To $6 Billion Worth Of Goods
The Federation of Indian Export Organisations (FIEO) has expressed concerns, citing potential disruption to India’s steel and aluminium exports, particularly in value-added and finished steel products
US President Donald Trump has Indian exporters concerned yet again, this time about the potential hit $6 billion worth of steel and aluminium goods will face following his doubling of existing tariffs.
On May 30, 2025, President Donald Trump announced that he will double the existing 25% tariffs on steel and aluminium imports, raising them to 50% starting June 4.
This increase comes under Section 232 of the U.S. Trade Expansion Act of 1962, a law that allows the president to impose tariffs or other trade restrictions if imports are deemed a threat to national security.
The Federation of Indian Export Organisations (FIEO) has expressed concerns, citing potential disruption to India’s steel and aluminium exports, particularly in value-added and finished steel products and auto components.
"This will have a significant bearing on India’s steel exports, especially in semi-finished and finished categories like stainless steel pipes, structural steel components, and automotive steel parts. These products are part of India’s growing engineering exports, and higher duties could erode our price competitiveness in the American market," said President S C Ralhan.
"We urge the government to take up the issue at the bilateral level to ensure that Indian exporters are not unfairly disadvantaged, more so for the shipments, as a 25% additional duty will be a huge burden, which is difficult to be absorbed by the exporter/importer," he added.
India exported approximately $6.2 billion worth of steel and finished steel products to the US in FY25, including a wide range of engineered and fabricated steel components and about $0.86 billion of aluminium and its products. The US is among the top destinations for Indian steel manufacturers, who have been gradually increasing market share through high-quality production and competitive pricing.
"These exports are now exposed to sharply higher U.S. tariffs, threatening the profitability of Indian producers and exporters," concurred Ajay Srivastava, founder of the Global Trade Research Initiative.
"India has already issued a formal notice at the World Trade Organisation signalling its intention to impose retaliatory tariffs on US goods in response to the earlier steel tariffs. With Trump now doubling the tariffs, it remains to be seen whether India will carry out the retaliation by increasing tariffs on certain US exports within a month," he added.
"It’s unfortunate that while BTA negotiations are going on, such unilateral tariff increases should be done. It only makes the work of the negotiators much more difficult and complicated. Will definitely impact the engineering exports, which are about $5 billion under this head," Pankaj Chadha, Chairman of the Engineering Exports Promotion Council.
Chadha added that the Council urges that since the UK has been given exemption from Section 232 as part of the trade deal, the same exemption should also be given with tariff rate quota restrictions to India.
