Expressing concern over the Trump-administration’s move, they said the Indian government should take up the matter bilaterally with the US authorities.
On May 30, Trump announced that he would double the existing 25 per cent tariffs on steel and aluminium imports from June 4.
This hike comes under Section 232 of the US Trade Expansion Act of 1962, a law that allows the president to impose tariffs or other trade restrictions, if imports are deemed a threat to national security.
Trump originally invoked this provision in 2018 to set the 25 per cent tariff on steel and 10 per cent on aluminium. He raised tariffs on aluminium to 25 per cent in February 2025.
For India, the consequences are direct, the Global Trade Research Initiative (GTRI) said. In 2024-25, India exported USD 4.56 billion worth of iron, steel, and aluminium products to the US, with key categories, including USD 587.5 million in iron and steel, USD 3.1 billion in articles of iron or steel, and USD 860 million in aluminium and related articles. “These exports are now exposed to sharply higher US tariffs, threatening the profitability of Indian producers and exporters,” GTRI founder Ajay Srivastava said.
India has already issued a formal notice at the World Trade Organization (WTO) signalling its intention to impose retaliatory tariffs on US goods in response to the earlier steel tariffs.
“With Trump now doubling the tariffs, it remains to be seen whether India will carry out the retaliation by increasing tariffs on certain US exports within a month,” he said.
The Federation of Indian Export Organisations (FIEO) President S C Ralhan said the proposed increase in import duty will have a significant bearing on India’s steel exports, especially in semi-finished and finished categories like stainless steel pipes, structural steel components, and automotive steel parts.
“These products are part of India’s growing engineering exports, and higher duties could erode our price competitiveness in the American market,” he said.
The US is among the top destinations for Indian steel manufacturers, who have been gradually increasing market share through high-quality production and competitive pricing.
“Such sharp increases in tariffs send discouraging signals to global trade and manufacturing supply 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 per cent additional duty will be a huge burden, which is difficult to be absorbed by the exporter/importer,” Ralhan said.
The FIEO chief also emphasized on the need for Indian exporters to diversify their markets and invest in higher-grade value-added products to mitigate the impact of such protectionist measures.
