How Are Indian Exporters Reacting to US Tariff Increases on Steel and Aluminium?

New Delhi, May 31 (NationPress) The Federation of Indian Export Organisations (FIEO) has raised alarms regarding the recent declaration by US President Donald Trump to increase import tariffs on steel and aluminium from 25% to 50%. This change could significantly impact India's steel and aluminium exports, especially in value-added and finished steel products as well as auto-components.

In response to this announcement, FIEO president S.C. Ralhan remarked that this proposed tariff hike will notably affect India’s steel exports, particularly in semi-finished and finished categories such as stainless steel pipes, structural steel components, and automotive steel parts.

“These products form a vital part of India's expanding engineering exports, and increased duties could undermine our price competitiveness in the US market,” he noted.

In the fiscal year 2024-25, India exported roughly $6.2 billion in steel and finished steel products to the USA, which included a diverse range of engineered and fabricated steel components, alongside approximately $0.86 billion in aluminium and its products. The US ranks as one of the primary markets for Indian steel producers, who have been steadily boosting their market share through quality production and competitive pricing.

Moreover, Ralhan pointed out that while the decision is based on domestic policy in the US, such drastic tariff increases send negative signals to global trade and manufacturing supply chains.

“We call on the Government to address this matter at the bilateral level to ensure that Indian exporters are not unfairly burdened, as an additional 25% duty on steel shipments would be a significant challenge for both exporters and importers to absorb,” he stated.

Furthermore, the FIEO chief highlighted the importance for Indian exporters to diversify their markets and invest in higher-grade value-added products to offset the repercussions of such protective measures.

Meanwhile, discussions regarding the India-US Bilateral Trade Agreement are ongoing. Representatives from India’s Department of Commerce and the US Trade Representative's Office recently held productive discussions in Washington from April 23-25, aiming to finalize the first phase of the Bilateral Trade Agreement by Fall (September-October) of 2025.

These ongoing negotiations are part of bilateral efforts in line with the Leaders’ Statement made during Prime Minister Narendra Modi’s visit to Washington in February this year, when he and US President Donald Trump discussed reaching a mutually beneficial, multi-sector Bilateral Trade Agreement by Fall 2025.

The two leaders have committed to strengthening the US-India trade relationship to foster growth that emphasizes fairness, national security, and job creation. They have set an ambitious target for bilateral trade—‘Mission 500’—which aims to more than double total bilateral trade to $500 billion by 2030.