How Trump’s Tariff Hike Could Devastate India’s Exporters Overnight
India’s exporters are expected to face serious challenges, as President Donald Trump has doubled tariffs on imported steel and aluminium from 25% to 50%, effective June 4, 2025.
(ALSO READ: $27 Billion Heir Shravin Bharti Mittal Ditches UK—Is the Wealth Exodus Just Beginning?)
Exporting around $5 billion worth of steel and aluminium products annually to the US, India’s exporters fear the increased tariffs could make their goods less competitive and disrupt shipments already en route. Trade experts and Indian industry leaders urge the government to negotiate a waiver similar to the UK’s to protect Indian exporters amid ongoing bilateral trade discussions.
India’s Exporters Speak Up
In contrast, India’s exporters, who ship approximately $5 billion worth of steel and aluminium products to the US annually, are bracing for impact. The Engineering Export Promotion Council (EEPC) of India expressed worries that the tariff hike might make Indian goods more expensive and less competitive in the US market.
Pankaj Chadha, Chairman of EEPC India, said, “This isn’t the right time for such sudden tariffs, especially while we’re negotiating a bilateral trade agreement. We hope these exporters can get a waiver like the UK.”
Union Minister HD Kumaraswamy acknowledged the impact but tried to keep things in perspective. “The effect will be minor since the Indian exporters don’t ship huge volumes to the US,” he said. Still, he warned that shipments already on their way to the US arriving after June 4 will face the new 50% tariff, which could cause headaches for the Indian exporters.
Trump Stands Firm
President Trump defended the tariff increase, saying it’s about protecting American workers. “At 50%, foreign competitors will find it much harder to compete with our steel industry,” he said.
Trade experts warn this move could strain relations and complicate ongoing trade talks with various countries, including India’s exporters, who are watching closely as the situation unfolds.
For ongoing coverage and the latest developments, stay with Newz24India.