Trump Targets Metal Imports Again; India’s $4.5 Billion Export Industry at Risk
Washington, 4th June 2025: The United States will double its tariffs on imported steel and aluminum starting Wednesday, escalating trade tensions as steel prices in the country hit record highs. According to an official order signed by President Donald Trump, the import duties on both metals will rise from 25 percent to 50 percent, effective immediately.
The move, described by the White House as a national security measure, is the latest in a series of trade policy steps under Trump’s renewed presidency. The administration said the decision is aimed at “providing more support to domestic industries” and “reducing or eliminating the threat posed by excessive imports of steel and aluminum and their derivatives.”
UK Exempt from Tariff Hike
Notably, the United Kingdom remains exempt from this tariff increase. The White House clarified that metal imports from Britain will continue to be taxed at the existing 25 percent rate, in accordance with terms negotiated in a previous bilateral trade agreement.
Trump: “No One Will Steal Your Industry”
President Trump formally announced the decision during a speech last week at a U.S. Steel plant in Pennsylvania, where he addressed factory workers and reiterated his protectionist stance.
“No one will be able to steal your industry,” Trump declared, promising to shield American metal producers from what he described as unfair foreign competition.
The tariff hike was issued under Section 232 of the U.S. Trade Expansion Act of 1962, which allows the president to impose trade barriers on imports deemed a threat to national security. Trump first used this provision in 2018 to levy 25 percent tariffs on steel and 10 percent on aluminum. In February 2025, the aluminum tariff was raised to 25 percent.
Impact on Global Trade and Indian Exports
The decision could strain trade relations with key exporters, including India, which exported $4.56 billion worth of steel and aluminum to the U.S. last year. Of that, $3.1 billion was iron and steel, as American buyers turned to Indian suppliers due to rising domestic prices.
According to trade analysts, U.S. steel currently costs $984 per tonne, compared to $690 in Europe and $392 in China. A GTRI (Global Trade Research Initiative) study projects the U.S. steel price could surge to $1,180 per tonne, while in India, it remains in the $500–550 range.
India had earlier filed a complaint with the World Trade Organization (WTO) when the Trump administration first introduced tariffs in 2018. It remains to be seen whether New Delhi will challenge the latest hike through the WTO once again.
Trade Watchers Eye Next Moves
Economists and trade experts warn that the decision could not only raise construction and manufacturing costs in the U.S. but also trigger retaliatory measures from affected countries.
