The decision of US President donald trump to double the import tariff on steel and aluminum can have a direct impact on India. According to the report of the Global Trade Research Initiative (GTRI), this decision is threatening India's metal exports of $ 4.56 billion (about Rs 38,000 crore).
What is the matter?
On May 30, 2025, donald trump announced that the tariff on imports of steel and aluminum in the US would be increased from 25 percent to 50 percent. This new rule will come into effect from june 4, 2025. trump has taken this decision citing America's "national security".
How will it affect India?
india exported a total of $ 4.56 billion worth of steel and aluminum related goods to the US in the financial year 2025. This includes iron and steel worth $587.5 million, iron or steel products worth $3.1 billion and aluminum and related products worth $860 million. Now that these will be taxed at 50 percent in the US, indian goods will become more expensive there. This will reduce the competitiveness of indian companies and may harm their business.
What is india doing?
india has informed the World Trade Organization (WTO) about this decision and it is believed that the government is preparing to take retaliatory measures.
What does GTRI say?
GTRI says that this decision will not only harm business but also the environment. A huge amount of carbon is released in the manufacture of steel and aluminum. While the world is investing in green technology, there is no concern for the environment in Trump's decision.
What is Trump's intention?
Experts believe that this decision is a part of America's 'economic nationalism' i.e. "America First" policy. While this may benefit domestic industries in America, it is a danger signal for global trade and climate goals..jpg)
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