Indian exporters worried over US tariff hikes on steel, aluminium goods

New Delhi, May 31 (IANS) The Federation of Indian Export Organisations (FIEO) has expressed concern over the recent announcement by US President Donald Trump to double import tariffs on steel and aluminium from 25 per cent to 50 per cent, citing potential disruption to India’s steel and aluminium exports, particularly in value-added and finished steel products and auto- components.

Reacting to the development, FIEO president S.C. Ralhan stated that the proposed increase in US steel and aluminium import tariffs 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.

India exported approximately $6.2 billion worth of steel and finished steel products to the USA in the financial year 2024-25, including a wide range of engineered and fabricated steel components and about $0.86 billion of aluminium and its products. The US is among the top destinations for Indian steel manufacturers, who have been gradually increasing their market share through high-quality production and competitive pricing.

The FIEO president further added that while it is understandable that the decision stems from domestic policy considerations in the US, 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 on steel shipments will be a huge burden, which is difficult to be absorbed by the exporter or importer.

The FIEO chief also emphasised 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.

Meanwhile, as part of ongoing discussions on the India-US Bilateral Trade Agreement, representatives of India’s Department of Commerce and the Office of the US Trade Representative held fruitful discussions at a meeting in Washington from April 23-25 to conclude the first tranche of the Bilateral Trade Agreement by Fall (September-October) of 2025,

The ongoing discussions are part of bilateral efforts in line with the Leaders’ Statement. Prime Minister Narendra Modi, during his visit to Washington in February this year, held talks with US President Donald Trump on negotiating the first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement by the fall of 2025.

The two leaders resolved to deepen the US-India trade relationship to promote growth that ensures fairness, national security and job creation. To this end, the leaders set a bold new goal for bilateral trade – ‘Mission 500’ -- aiming to more than double total bilateral trade to $500 billion by 2030.

--IANS

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