Economy
What is at stake for India amid Trump's tariff war on steel and aluminium, in six charts
Summary
US President Donald Trump’s imposition of hefty tariffs on steel and aluminium may put India in a fix. The US is among India's top export markets for both metals, and the tariffs could potentially result in a slowdown in exports to one of its key markets.
US President Donald Trump’s decision to impose a flat 25% tariff on all steel and aluminium imports (likely effective 12 March) has raised fears of a global backlash and trade war. While the tariffs aren't directly targeted at India, they could still pose challenges. India, among the primary producers of these metals, faces the risk of increased dumping as other nations could divert their exports due to the tariffs.
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The country is also among the key suppliers of the two metals to the US. A potential shift in market share dynamics is likely due to the move.
India is among the top producers of both metals globally, though China dominates the market by a huge margin. India produced 4,200 tonnes of aluminium in 2024, accounting for 6% of the world’s aluminium smelter production, according to data from the United States Geological Survey. On the other hand, India produced 149.59 million tonnes (mt) of steel, according to the World Steel Association, last year, accounting for 8% of global production.
Nearly a quarter of all steel used in the US is imported. India was the seventh biggest supplier of aluminium to the US between March 2024 and February 2025. It provided nearly 3% of US imports, totalling 0.14 mt, according to the latest data from the International Trade Administration, an agency in the US Department of Commerce.
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On the steel front, while India’s rank is lower at 18th, the US imported 2.3 mt of the metal, accounting for nearly a per cent share in its overall imports, showed International Trade Administration data.
India’s iron, steel and aluminium exports have remained under pressure for much part of the past decade due to concerns around dumping, and these tariffs could increase the country’s export woes. Data for iron and steel are available together. In 2023-24, iron and steel imports—that include products made from the two metals—fell 5.7% year-on-year while those of aluminium fell 13.2%.
The latest data for 2024-25 from the commerce ministry shows that the US was among the top five export destinations for both minerals for India. This is particularly true for aluminium, where the US was the number one export destination, cornering a 12% share. The tariffs could potentially result in a slowdown in exports to one of its key markets.
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