India’s role in the U.S. aluminum supply chain has come under heavy scrutiny as global trade dynamics continue to evolve. With protectionist policies coming into play, tariffs rising, and patterns of demand shifting, India can be considered a key player in the U.S. aluminum ecosystem, albeit one that is under threat.
This article will examine India’s export performance, the positioning of India in global supplier terms, and the effects of recent U.S. Section 232 proclamations, which have placed a flat 25-percent tariff on aluminum and aluminum products.
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India’s Aluminium Exports to the U.S.: A Performance Snapshot
India has historically remained one of the top 10 suppliers of aluminum for the United States, even after Section 232 tariffs were imposed in early 2018. Recent trends are highlighted in the table below:
USA’s Global Imports of Aluminium (Ch. 76) – US$ Billion
Exporter | 2022 | 2023 | Growth (%) | Share 2022 | Share 2023 |
Canada | 12.94 | 11.22 | -13.3% | 35.3% | 39.7% |
China | 4.04 | 2.74 | -32.1% | 11.0% | 9.7% |
Mexico | 2.27 | 1.96 | -13.9% | 6.2% | 6.9% |
India | 1.22 | 0.91 | -25.6% | 3.3% | 3.2% |
As India has witnessed a 25.6% drop in 2023, nevertheless, it has a significant share in the U.S. aluminum import basket: witness the case for aluminum long products and billets.
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Key Product Categories from India to the U.S.
U.S. proclamations from February 18, 2025, have now extended Section 232 for more tariff lines, which will include both raw and finished aluminum products.
India’s 5-Year Average Exports (2019–2023) vs U.S. Imports
Product Category | India’s Exports (US$ Mn) | U.S. Imports (US$ Mn) | India’s Share |
Aluminium Ingots | 264.42 | 10,944.12 | 2.4% |
Aluminium Long Products | 133.13 | 2,397.90 | 5.6% |
Derivatives of Aluminium | 1,157.83 | 69,659.87 | 1.7% |
Flat Rolled Aluminium Products | 47.02 | 3,765.30 | 1.2% |
Products of Aluminium | 151.06 | 6,071.35 | 2.5% |
The Indian strength is aluminium long products, especially in bars, rods, wires & billets, especially under HS Code 76051100, wherein India commands 13.2% of U.S. imports.
U.S. Demand Drivers for Aluminium
The U.S. aluminium market is driven by five major sectors:
Sector | % Share of U.S. Aluminium Use |
Transportation | 36% |
Packaging | 23% |
Construction | 14% |
Electrical | 9% |
Consumer Durables | 8% |
With electric vehicles, renewable energy, and sustainable packaging being an increasingly demanded future, India has an opportunity to establish itself as a major supplier of value-added aluminium components.
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Challenges Posed by Section 232 Tariffs
Indian aluminium exporters are now also facing fresh challenges from recent U.S. policy changes:
- Flat 25% duty on all aluminium and derived products
- Cancellation of product exclusion certifications and GAEs
- Downstream fabricated items and components are also included
- Elevated effective entry barriers to Indian aluminium in the U.S. market
Aluminium exports from India still increased in some categories in 2023, showing incredible resilience and competitiveness despite these barriers.
USA’s Supply Deficit and Import Reliance
According to USGS:
Year | U.S. Aluminium Import Reliance (%) |
2020 | 38% |
2021 | 40% |
2022 | 52% |
2023 | 44% |
2024 | 47% |
This continued dependency on imports, especially of billets and wires, suggests that the U.S. will continue to need imports. And thus, India is a strategic partner.
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Must-Read Blog Posts from NPCS
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Final Thoughts
The progressive rise of India in the aluminum supply chain of the US is a strategic necessity as much as an issue of the quality of products. Tariffs have kept the doors closed but with this limited but strong presence of India in long products, billets, and various value-added derivatives, there lie strong sustainable growth opportunities.
Further aggressive advocacy by the government, shrewd trade diplomacy, and entrepreneurship would further strengthen India’s presence in global aluminum markets.
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