US Tariffs Impact On India: How Will Donald Trump-Led Levies Affect the Metal Sector? Know From Experts

US Tariffs Impact on India: The United States President Donald Trump-imposed 50% tariffs may cause significant disruptions in sectors that are highly dependent on the US market. The Indian steel industry is unlikely to see a major impact of the US tariffs, except for aluminium and precious metals, according to experts.

India was a major exporter of primary aluminium in 2024, and it exported around 6-8% of the metal to the US, according to a CareEdge report. "The impact of the tariff hike on export volumes and its realisations for Indian aluminium producers is expected to be higher than that of domestic steel manufacturers," noted CareEdge in its report earlier.

However, the Indian steel producers may remain unaffected because of Trump tariffs, except for some products. "Indian steel makers see little new impact as they had been largely priced out of the U.S. since 2018. However, for aluminium (10% Section-232 tariff), the jump in duty is significant," noted Amnish Aggarwal, Director-Research, Institutional Research, PL Capital.

India-US Metal Trade

The trade of ferrous and non-ferrous metals constitutes around 5.4% of the total items exported to the US from India, as per the CareEdge report released on 1 August, citing CMIE data. Which means that there will be some amount of impact on the Indian steel industry.

Around 21% of India's total global metal exports go to the US market, added CareEdge in its report. India exported around $ 2.8 billion of articles of iron and steel to the US in the financial year 2023-24, as per PL Capital analysis. Whereas it imported around $5.3 billion of precious metals from the US in FY24.

US Tariffs May Hit Trade Temporarily

The US tariffs will have a short-term impact on the steel trade, according to industry players who believe that the strong domestic demand, strong emerging markets, and value-added manufacturing will build long-term resilience.

"The US tariffs may temporarily influence trade flows, but the Indian steel industry has consistently demonstrated resilience in adapting to global shifts. With strong domestic demand, growing opportunities in emerging markets, and a focus on high-quality, value-added manufacturing, Indian steelmakers are well positioned to recalibrate and build long-term resilience. Challenges such as these often act as catalysts for innovation and diversification," stated Chandragupt Prakash Mangal, Managing Director, Mangalam Worldwide Limited.

"By tapping into fast-growing regions such as Asia, Africa, and the Middle East, and with proactive government support through trade partnerships and enabling policies, the sector can turn headwinds into opportunities for sustainable global growth," he added.

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