New Delhi – The Federation of Indian Export Organisations (FIEO) has raised concerns following the recent announcement by US President Donald Trump to double import tariffs on steel and aluminium from 25% to 50%. Indian exporters fear the move could significantly impact shipments, particularly of value-added steel products and auto components.
FIEO President S.C. Ralhan warned that the steep tariff hike would disrupt India’s steel exports to the US—especially in key segments like stainless steel pipes, structural components, and automotive-grade steel.
“These products are central to India’s growing engineering exports. Higher duties will severely affect our price competitiveness in the US market,” Ralhan said in a statement.
In FY 2024-25, India exported approximately $6.2 billion worth of steel and steel products to the US, including a wide range of engineered and fabricated components, alongside $860 million in aluminium and related goods. The US remains one of the top destinations for Indian steel and aluminium exporters, many of whom have steadily grown their footprint through high-quality production and cost efficiency.
Ralhan acknowledged that the tariff hike may stem from domestic policy priorities in the US, but warned that such abrupt measures send “discouraging signals” to global trade and manufacturing ecosystems.
“We urge the Indian government to raise this issue through bilateral channels to prevent Indian exporters from being unfairly penalised. A 25% increase in duties will be an unsustainable burden—neither the exporter nor the importer can easily absorb it,” he added.
A Call for Market Diversification
The FIEO chief also stressed the need for Indian exporters to diversify their markets and move further up the value chain by investing in high-end, value-added products to cushion the effects of rising protectionism in key markets like the US.
Bilateral Trade Talks Progressing
The tariff concerns come amid ongoing negotiations between India and the US on a Bilateral Trade Agreement. Officials from India’s Department of Commerce and the Office of the US Trade Representative (USTR) held discussions in Washington from April 23–25, aiming to finalize the first tranche of the agreement by Fall 2025.
These talks are in line with the Leaders’ Statement issued during Prime Minister Narendra Modi’s February visit to Washington, where he and President Trump committed to deepening trade ties and enhancing economic cooperation.
As part of this effort, the two leaders announced an ambitious trade vision, “Mission 500”, targeting over $500 billion in total bilateral trade by 2030—more than double the current levels. (Source: IANS)
