Trump Announces 25% Tariffs on Steel and Aluminum Imports, Threatens More to Come
US President Donald Trump has revealed plans to announce a 25% tariff on all steel and aluminum imports, a move that continues to fuel trade tensions between the United States and several countries, including India.
US President Donald Trump has revealed plans to announce a 25% tariff on all steel and aluminum imports, a move that continues to fuel trade tensions between the United States and several countries, including India. The announcement, which is expected to take place on Monday, will cover imports from all nations.
During his flight to New Orleans for the Superbowl, Trump confirmed, “Any steel coming into the United States is going to have a 25% tariff, aluminum, too.” The president also hinted at reciprocal tariffs, stating, “Very simply, if they charge us, we charge them.” These new tariffs will be implemented immediately, with details to be unveiled on Tuesday or Wednesday.
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Impact on India’s Steel and Aluminum Exports
The announcement comes ahead of Indian Prime Minister Narendra Modi’s visit to Washington. India exported steel worth $4 billion and aluminum worth $1.1 billion in 2023. The US has long accused India of subsidizing its steel and aluminum exports, making this new tariff announcement a point of contention.
In 2023, India and the US agreed to settle six disputes over steel and aluminum at the World Trade Organization. However, in October, the US imposed tariffs as high as 39.5% on certain aluminum imports, adding to the ongoing trade complexities.
Historical Context of US-India Trade Relations
The US has previously taken measures to address its trade imbalance with India. Under former President Joe Biden’s administration, the US waived additional tariffs imposed by the Trump administration, ranging from 10% to 25%, in exchange for India reducing tariffs on American products like apples, walnuts, and almonds.
While India’s trade surplus with the US remains significant, with total exports to the US amounting to $87.4 billion in 2023, this latest tariff escalation could further strain relations.
Trump’s Ongoing Efforts to Address US Trade Deficits
President Trump’s focus on reducing the US trade deficit through tariffs has been a central part of his economic policy. During his first term, he famously targeted India, calling it a “Tariff King” and imposing a 100% duty on Harley Davidson motorcycles as an example of perceived unfair trade practices.
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In response, India recently reduced import duties on Harley Davidson models, dropping tariffs on heavier models from 50% to 30% and other models from 50% to 40%. India also made tariff adjustments in areas like satellite ground equipment and scrap materials, aiming to ease tensions.
As President Trump prepares to roll out these new tariffs, the global steel and aluminum trade landscape, especially between the US and India, may face further shifts. With escalating tensions and unresolved trade disputes, the coming weeks could be pivotal for international trade relations.
