Trump’s 50% steel and aluminium tariffs threaten India’s $5 billion engineering exports
India’s engineering exports are set to take a major hit as former U.S. President Donald Trump announces a 50% tariff on steel and aluminium imports, doubling the previous 25% duty. With India exporting $5 billion worth of steel, aluminium, and related products to the U.S. annually, industry experts warn of severe disruptions in trade and declining competitiveness for Indian manufacturers.
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The Impact on India’s Steel and Aluminium Industry
The Engineering Export Promotion Council of India (EEPC) has raised concerns that the new tariffs will make Indian exports more expensive, leading to a decline in shipments. While India’s direct steel exports to the U.S. remain limited, the global trade flow disruption could intensify competition, forcing Indian exporters to seek alternative markets.
According to Fitch Ratings, Indian steel producers could face price volatility as countries with higher U.S. exposure redirect their shipments to India, flooding the domestic market with excess supply.
India-U.S. Trade Talks Under Pressure
The timing of Trump’s tariff hike is critical, as India and the U.S. are currently negotiating a bilateral trade agreement. The Commerce Ministry remains optimistic that preferential access for Indian businesses could help mitigate the impact, but the tariff hike complicates ongoing discussions.
Industry experts suggest that India should push for an exemption, similar to the UK’s recent waiver from the 25% steel and aluminium tariffs. However, securing such a deal amid Trump’s aggressive trade policies remains uncertain.
Conclusion
Trump’s tariff escalation poses a significant challenge for India’s engineering exports, forcing manufacturers to rethink trade strategies. As India-U.S. negotiations continue, securing preferential access or alternative markets will be key to minimizing losses
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