Trump Announces 25% Tariffs on Steel and Aluminum Imports; Warns of More to Come
US President Donald Trump has declared that he will impose a 25% tariff on all steel and aluminum imports, a long-standing and contentious issue in US-India trade relations.
New York: US President Donald Trump has declared that he will impose a 25% tariff on all steel and aluminum imports, a long-standing and contentious issue in US-India trade relations.
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Trump confirmed the announcement on Sunday, stating that the tariffs would apply to imports from all countries. “Any steel coming into the United States is going to have a 25% tariff, aluminum, too,” Trump said while en route to New Orleans for the Superbowl.
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Reciprocal Tariffs Expected
In addition to the steel and aluminum tariffs, Trump indicated that reciprocal tariffs would be imposed on all countries that charge the US. “Very simply, if they charge us, we charge them,” he added.
The new tariffs are expected to be announced on Tuesday or Wednesday and will take effect immediately, according to Trump.
Impact on India’s Exports
The tariff announcement comes just ahead of Prime Minister Narendra Modi’s visit to Washington this week. In 2023, India exported $4 billion worth of steel and $1.1 billion worth of aluminum to the US, making this a significant trade issue.
Steel and aluminum trade has been a major point of contention between the two nations, with the US accusing India of subsidizing these exports. During PM Modi’s visit to Washington in 2023, the US and India agreed to resolve six disputes at the World Trade Organisation related to metals.
Previous US Tariffs on Indian Imports
In October, the US imposed duties as high as 39.5% on certain aluminum imports from India. It remains unclear how the new 25% tariff will affect these categories.
Under the administration of former President Joe Biden, the US agreed to waive additional tariffs, which had ranged from 10% to 25% during Trump’s first term. This waiver was part of an agreement where India pledged to reduce tariffs on apples, walnuts, and almonds.
Trade Deficit Concerns
India’s total exports to the US amounted to $87.4 billion in 2023, while imports from the US totaled $47.8 billion, creating a significant trade surplus for India, according to the US Census Bureau.
Trump has long focused on reducing US trade deficits through the use of tariffs. During his first term, he cited the 100% duty on Harley Davidson motorcycles as an example of why he considered India a “Tariff King.”
India took steps to address this by reducing tariffs on heavier Harley Davidson models from 50% to 30% and from 50% to 40% on other models. In contrast, India removed tariffs on some items, like satellite ground equipment and certain scrap and waste categories, while also reducing duties on others.
