Donald Trump’s New Tariff Decision Deals a Blow to Indian Exports; Trade Worth ₹39,000 Crore at Risk

Former U.S. President Donald Trump’s latest policy move has sparked fresh concerns for India’s export sector. Trump, known for his protectionist trade stance during his presidency, has once again made headlines by proposing a 50% tariff on steel and aluminum products imported into the United States. This decision could significantly impact India’s exports, with goods worth nearly ₹39,000 crore now facing uncertainty.

Since Trump’s rise in U.S. politics, several new trade regulations and restrictions have been introduced. The proposed 50% tariff is expected to affect not only direct steel and aluminum exports but could also have a cascading effect on related sectors such as automobiles and auto components — areas where India has a substantial footprint.

According to data from the Global Trade Research Initiative (GTRI), India exported approximately $4.56 billion (about ₹39,000 crore) worth of steel, aluminum, and related products to the United States in FY2024-25. The breakdown includes $587.5 million in iron and steel products, $3.1 billion in iron or steel articles, and $860 million in aluminum and related goods.

These exports predominantly originate from the industrial hubs of Maharashtra, Gujarat, and Tamil Nadu. The sudden imposition of such a steep tariff could disrupt manufacturing and trade dynamics in these regions, causing ripples across India’s broader export economy.

The United States remains one of India’s most crucial trading partners, especially in sectors like metals, automotive components, and machinery. Trade experts warn that Trump’s proposed tariffs could trigger a shift in global trade routes and compel Indian exporters to re-strategize their market approach.

With this move, the global trade environment stands at a potential turning point, and Indian industry stakeholders are closely monitoring developments, preparing for possible diplomatic and economic responses.