US President Donald Trump’s upcoming tariff hike on steel and aluminum imports is likely to impact Indian metal exports worth $4.56 billion or Rs 39,000 crore. The Global Trade Research Initiative (GTRI) has said this in a new analysis report. The high duties that will come into effect from June 4 are expected to increase the product cost for Indian manufacturers and exporters in the US market, which may affect their competitiveness. The tariff hike will have a direct impact on India GTRI said, ‘The tariff hike will have a direct impact on India. In FY 2025, India exported iron, steel and aluminum products worth $4.56 billion to the US.’ The US remains a major market for India’s metal sector. FY25 exports included iron and steel worth $587.5 million, iron and steel products worth $3.1 billion, and aluminum and related items worth $860 million. India’s market share will be challenged The GTRI report warns that tariff hikes on these categories will challenge India’s market share and profitability in the US. Tariff hike from 25% to 50% Trump on Friday announced plans to increase the existing tariff on steel and aluminum imports from 25% to 50%, citing national security concerns under Section 232 of the US Trade Expansion Act 1962. This law gives the US president the power to impose trade restrictions if certain imports are found to pose a threat to national security. Trump first implemented this provision in 2018, imposing a 25% tariff on steel and 10% on aluminum. These rates were revised in February 2025, raising the aluminum tariff to 25%. US steel price may rise to Rs 1 lakh per tonne According to GTRI, the latest tariff hike could push US steel prices above $1,180, or about Rs 1 lakh per tonne, which will impact key sectors such as automotive, construction and manufacturing. India has filed a notification with the World Trade Organization (WTO) regarding the tariff hike and is exploring additional response measures. GTRI also expressed concern about environmental impacts GTRI has also expressed concern about the environmental impacts of the US move. The think tank said, “Steel and aluminum manufacturing lead to carbon emissions at the global level. While other countries invest in environmentally friendly production methods, US policy lacks environmental considerations.” GTRI said, “This decision reflects the Trump administration’s priority for economic nationalism over environmental protection.” GTRI also said that this also raises questions about America’s commitment towards global climate goals and sustainable industrial development.
