US President Donald Trump announced at US Steel’s Mon Valley Works–Irvin Plant in Pittsburgh that he is doubling tariffs on imported steel to protect the domestic steel industry. The current 25% duty on steel imports will increase further, effective June 8, 2025. Trump also stated aluminum tariffs will rise to 50%.
- Background:
Steel prices in the US have already surged 16% since Trump took office, hitting $984 per metric ton in March 2025. This is substantially higher than steel prices in Europe ($690/ton) and China ($392/ton). - Indian Exports at Stake:
India exported ₹4,984.39 crore worth of iron and steel and ₹26,385.84 crore worth of iron/steel articles to the US in fiscal 2025, up 26.66% and 14.08% YoY respectively. These exports make steel among the top six commodity categories India exports to the US. - Potential Impact:
Increased tariffs could lead US importers to reduce Indian steel imports to avoid higher duties, possibly causing a slowdown in India’s steel export market. - Domestic Steel Scenario in India:
While the public sector giant SAIL reported an 11% rise in quarterly net profit, India’s overall steel imports rose 9.2% to 10.5 million tonnes last fiscal, but steel exports declined by 27% to 6.3 million tonnes. For the second consecutive year, India remained a net importer of steel, posing challenges for local producers. - Additional Notes:
The tariff hike follows a major deal between Nippon Steel and US Steel, signaling US efforts to strengthen its domestic steel sector through both protectionist measures and strategic partnerships.
Key Takeaway
The US steel tariff hike poses a significant risk to India’s steel export growth, especially as the US is a major market. Coupled with India’s net importer status and rising domestic imports, the steel sector faces challenges both internationally and at home.
