India’s exports of metal and aluminium and their merchandise are anticipated to take $1 billion hit with the proposed contemporary tariff hikes by the U.S..
The proposed tariff is double the present 25% tariff underneath Section 232 of the Trade Expansion Act.
Pankaj Chadha, chairman of EEPC India, advised The Hindu that annual exports of metal, aluminium and merchandise are value practically $5 billion. “We have barely settled down after the March announcement of sectoral tariff. How can we do business with such uncertainty in tariffs. The US sources castings, fasteners, holdings, etc. We (Indian exporters) need to diversify to other markets,” he stated.
The EEPC India will pursue with the Indian authorities to get exemption from Section 232, related to the exemption the U.S. has given to the U.Ok.
According to the GTRI, the U.S. metal costs are already excessive, at round $984 per tonne in contrast with European costs at $690 and Chinese costs at $392. The doubling of tariffs is anticipated to push U.S. costs to about $1,180, hitting the U.S. home industries in sectors such as cars, development, and manufacturing. For India, the results are direct. In FY 2025, India exported $4.56 billion value of iron, metal, and aluminium merchandise to the U.S., with key classes together with $587.5 million in iron and metal, $3.1 billion in articles of iron or metal, and $860 million in aluminium and associated articles.
India has issued a formal discover on the World Trade Organization signalling its intention to impose retaliatory tariffs on U.S. items in response to the sooner metal tariffs. With the US now planning to double the tariffs, it stays to be seen whether or not India will perform the retaliation, by rising tariffs on sure U.S. exports inside a month. India imports practically $ 2 billion value iron, metal, aluminium and their items from the U.S., stated the GTRI.
S C Ralhan, president of the Federation of Indian Export Organisations, stated in a press launch that the proposed tariff could have important bearing particularly on semi-finished and completed classes such as stainless-steel pipes, structural metal elements, and automotive metal elements. These merchandise are a part of India’s rising engineering exports, and better duties may erode India’s worth competitiveness within the U.S. market.
Such sharp will increase in tariffs ship discouraging indicators to international commerce and manufacturing provide chains. “We urge the Government to take up the issue at the bilateral level to ensure that Indian exporters are not unfairly disadvantaged as 25% additional duty will be a huge burden, which is difficult to be absorbed by the exporter/importer.”
Published – May 31, 2025 09:24 pm IST
