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U.S. Tariff Hike on Steel & Aluminum Threatens India’s $1 Billion Metals Trade

The U.S. government has doubled Section 232 tariffs on steel, aluminum, and their derivatives from 25% to 50% as of June 2025, followed by expanding the scope in August by adding 407 product categories. The move, justified as a national-security measure against excess global capacity and circumvention, is expected to raise costs for renewable energy equipment such as wind turbines, transformers, insulated cables, and mounting structures.

According to U.S. Census Bureau data, steel imports in 2024 totaled 20.55 million metric tons worth $23.23 billion, while aluminum imports stood at 5.43 million metric tons valued at $17.69 billion. India accounted for $526.28 million in steel exports (257,723 tons) and $445.37 million in aluminum exports (160,126 tons) to the U.S. in 2024, making up roughly 1.25% of U.S. steel imports and 2.94% of aluminum imports by volume. In total, about $1 billion worth of Indian-origin metals now fall directly under the 50% tariff regime.

The tariff escalation is expected to make Indian steel and aluminum less competitive in the U.S. market, potentially forcing buyers to shift sourcing to other regions. This comes on top of October 2024 anti-dumping and countervailing duties on aluminum extrusions from 14 countries, including India, with penalty rates ranging between 2.02% and 376.85% for dumping and 1.44% to 168.81% for subsidies.

These measures pose a dual challenge for Indian exporters, threatening margins, shipment volumes, and India’s share in the U.S. metals market, while also increasing input costs for U.S. renewable energy projects.