Trump to Impose 25% Tariffs on Steel and Aluminum Imports; Additional Measures Anticipated
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Synopsis
US President Donald Trump has announced a 25% tariff on steel and aluminum imports, a move that raises tensions in US-India trade relations as both countries navigate complex tariff issues.
Key Takeaways
- Trump's 25% tariff on steel and aluminum imports.
- Trade tensions between US and India escalate.
- Reciprocal tariffs to be implemented for all countries.
- India’s significant steel and aluminum exports to the US.
- Prior agreements to resolve trade disputes at WTO.
New York, Feb 10 (NationPress) US President Donald Trump has declared plans to impose a 25% tariff on all imports of both steel and aluminum, a trade issue that has long been a source of contention between India and the United States.
On Sunday, President Trump announced that he would reveal the tariffs on Monday, affecting imports from every country.
Trump stated, “Any steel entering the United States will incur a 25% tariff, and the same applies to aluminum,” during his flight to New Orleans for the Super Bowl.
He also mentioned that reciprocal tariffs would be introduced for all nations involved.
“In simple terms, if they impose charges on us, we will respond in kind,” he remarked.
These tariffs are set to be announced on Tuesday or Wednesday and will be implemented immediately, he confirmed.
This tariff warning comes just ahead of Prime Minister Narendra Modi’s scheduled visit to Washington this week.
In 2023, India exported $4 billion in steel and $1.1 billion in aluminum.
The trade of steel and aluminum has been a complex issue for both India and the United States, with Washington accusing New Delhi of providing subsidies to its exporters.
During PM Modi’s visit to Washington earlier this year, the two nations agreed to resolve six disputes at the World Trade Organization regarding these metals.
However, in October, the US imposed tariffs as high as 39.5% on specific categories of aluminum imports.
The exact implications of the newly announced 25% tariff by Trump concerning these categories remain unclear.
In the closing days of former President Joe Biden’s administration in January, the US agreed to roll back additional tariffs set by Trump’s prior administration, which ranged from 10% to 25%, implementing a joint mechanism for export monitoring.
In exchange, India committed to lowering tariffs on apples, walnuts, and almonds.
According to the US Census Bureau, India’s total exports to the United States reached $87.4 billion, while imports were $47.8 billion last year, resulting in a significant trade surplus for India.
Trump has consistently focused on addressing the US trade deficits and has pledged to amend them through tariffs.
During his first term, he highlighted a 100% duty on Harley Davidson motorcycles as a reason for labeling India as a “Tariff King”.
This month, India symbolically lowered the tariffs on heavier Harley Davidson models from 50% to 30% and from 50% to 40% for other variants.
In contrast, for significant categories like satellite ground equipment and certain scrap and waste materials, India eliminated tariffs while reducing them for others.
