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In the eleven months of 2024, Indian aluminum exports in the US for $ 2077 billion were 11.5 percent of the total exports of $ 6.7 trillion in 2023.
Trump’s tariff is a threat to affecting $ 1 billion steel and aluminum exports. ({Photo: Reuters)
US President Donald Trump’s plan to impose 25 percent tariffs on all steel and aluminum imports in the US may threaten to export around $ 1 billion, according to an analysis Moneycontrol,
India’s steel exports to the US are a minor fraction of total steel exports, and the US is only 5 percent of the total exports from India.
However, aluminum industry is more significant threats, as about 12 percent of the country’s exports are aimed at the United States.
During November 2024, India’s aluminum exports were $ 777 billion in the US, 11.5 percent of the total exports of $ 6.7 trillion in 2023.
However, during his first term in the office in 2018, there may be some silver layer as a similar decision by President Trump, it did not affect India’s aluminum exports.
The US has increased to about 11–15 percent in India’s total exports in the last decade.
While the US decision is expected to hurt Japan, Europe, Canada and Mexico more, data shows that India may not be completely immune to the effects of second order, as oversuply brought the prices low. May, thus Indian steel can harm manufacturers.
“Indian steel growers will face increased challenges in exporting their products. In the last 12 months, high steel imports in India have already reduced the prices and earnings of steel producers in India, “the rating of the Ting SIM, AVP, Moody.
While India’s iron and steel imports have declined by 4 percent, China and Indonesia have increased share in iron and steel imports. In 2024, China’s iron and steel imports increased by 20 percent, while Indonesia was 10 percent above the previous year. The import of iron and steel Vietnam in India also doubled in the first six months of FY 25, causing it to become the fifth largest steel importer for India from 19th rank two years ago.
On the other hand, steel imports from the US were 25 percent below. India runs a trade deficit with the US in relation to iron and steel.
Prime Minister Narendra Modi is ready for a bilateral meeting with President Trump this week, in which there is a possibility of tariff concessions on the agenda. Some reports suggest that India can provide more tariff cuts to the US, apart from those made in the budget 2025.
