A minimal effect is expected on India following the decision of U.S. President Donald Trump to raise the tariffs on aluminium and steel products, stated the Union Steel Minister of India on Monday (June 2, 2025). His assertions stem from the fact that India’s exports of these materials to the United States are fairly limited.
The president’s revelation last week, declaring his intention to escalate tariffs on imported aluminium and steel to 50% from the prevailing rate of 25%, stirred a cold response from the stock market. The announcement led to a slump in the stock prices of steelmakers based in Vietnam and South Korea, both countries being significant exporters to the U.S.
A significant proportion of all the steel consumed within the United States, roughly a quarter, is sourced from foreign nations. The key suppliers include neighboring countries such as Mexico and Canada, as well as close Asian and European allies such as Japan, South Korea, and Germany.
India, in contrast, fits in a comparatively lower bracket with respect to exporting steel to the U.S. Speaking in response to the proposed tariff hike, the Union Steel Minister, in a press conference in New Delhi, clarified the role they play on the international stage.
The minister stressed the limited extent of India’s steel export to the U.S., stating, ‘There will be some minor impact… Our steel exports to the U.S. do not constitute a major portion.’ This was shared with journalists who gathered for the official remark on this impending global trade shift.
Still, an analysis report by Fitch, the credit ratings agency, back in March, suggested potential adverse consequences for Indian steel manufacturers and the price of steel. These repercussions could become reality if countries with higher exposure to the U.S market begin redirecting their steel shipments to other destinations.
India’s capital, New Delhi, may be targeted as a more receptive market to offset losses, according to Fitch’s forecast. The probability of this redirection is rooted in the hope of nations finding milder markets for the metal alloy, should the tariff increase materialize as per President Trump’s plans.
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