The recent decision by US President Donald Trump to impose tariffs on steel and aluminum imports has sent shockwaves through the Indian metal industry. The tariffs, which were doubled to 50% from June 4, 2025, are expected to significantly impact India’s metal exports to the US, valued at $4.56 billion. Aditya Garodia, director of Corona Steel Industry Pvt Ltd, described the move as “like a nail in a coffin” for Indian steel exporters, with nearly 30% of orders cancelled due to the tariffs.
Garodia said that clients have slowed down on picking up orders, delaying payments by a month on average, while business in general has slowed as customers adopted a wait-and-watch policy. “It is difficult for the market to absorb such high tariffs,” he said. Demand in the domestic market has also been low due to competition from cheaper Chinese products, making it crucial for India to negotiate a lower tariff for its exports to the US than its competitors.
Ajay Srivastava, founder of Global Trade Research Initiative (GTRI), noted that higher tariffs imposed in 2018 have failed to revive the US steel industry. “Since the tariffs were first implemented in 2018, [US] steel imports have increased,” rising from $98.6 billion to $114 billion in 2024. Srivastava emphasized that these tariffs “haven’t cut imports or boosted production, but they’ve mostly stuck around because they play well in politics”. As a result, prices in the US are far higher than in Europe or China, making cars, buildings, and machines more expensive to produce.
The latest set of tariffs will be a considerable blow to Indian foundries, which export products worth about $4 billion globally, with the US market accounting for $1.2 billion. Ravi Sehgal, chairman of National Centre for Export Promotion (NCEP), said that more than 65% of these foundries and their suppliers of raw materials are Micro, Small, and Medium Enterprises (MSMEs) that will face the brunt of tariffs due to lower orders. “Tariffs beyond 10-14% would [make it] difficult for us to survive,” he added.
Sumit Agarwal, a Kolkata-based manufacturer, told Al Jazeera that his business has been hit hard by the tariffs, and he is thinking of laying off some of his 15 employees. “We are a small unit. The orders have practically dried up after the introduction of tariffs, which has made it difficult for us to continue with our existing staff. I am thinking about cutting at least 30-40% of my manpower,” he said.
Pankaj Chadha, chairman of Engineering Export Promotion Council of India (EEPC), suggested that diversification to countries like Peru and Chile, which would then export their finished products to the US, is the only way for survival. India’s Minister for Commerce & Industry, Piyush Goyal, stated that while India is ready to make a trade deal, “National interest will always be supreme,” and it would not be driven by any deadlines.
About The Author
