Trump Imposes 25 Per Cent Tariff On Steel Imports Before PM Modi’s US Visit

Just days before Prime Minister Narendra Modi’s visit to Washington, US President Donald Trump has announced a blanket 25 per cent tariff on all steel and aluminium imports, with no exemptions, reported The Hindu.

The latest move adds to a series of policy decisions that could impact India’s trade and diplomatic interests, yet the Indian government has remained largely silent or offered muted responses.

While Trump justified the tariffs as a way to revive domestic American industries, the 4 March implementation is expected to create challenges for global steel producers. However, India’s steel exports to the US are relatively small, standing at just 95,000 tonnes last year from a total production of 145 million tonnes.

Union Steel Secretary Sandeep Poundrik downplayed concerns, stating at a Bengal Chamber of Commerce and Industry event, “So, how does it matter if you are not able to export 95,000 tonnes?”, quoted as saying by The Hindu. However, he acknowledged that if more countries impose trade restrictions, Indian steel producers could face difficulties.

Industry experts warn that the new US tariffs will increase competition, leading to oversupply in other markets, including India. Hui Ting Sim, AVP at Moody’s Ratings, stated that high steel imports into India over the past year have already depressed domestic prices and affected earnings of steel producers.

Additionally, India has not commented on:

• Trump’s threats to impose 100 per cent tariffs on BRICS nations if they move away from the US dollar in global trade.

While India previously retaliated against Trump’s 2018 steel and aluminium tariffs by raising duties on 29 American products, its current strategic restraint suggests a carefully calibrated approach ahead of the upcoming Modi-Trump bilateral discussions.