Rising Trade Barriers: What’s Changing in 2025?
Under a significant policy shift, the United States has tougher Section 232 tariffs effective from March 12, 2025, as announced by the Trump administration, which now allows India to steel and aluminium exports. Tariffs have already been an issue since 2018, and now these tariffs have been intensified and extended to exclude all previous exemptions.
As per EEPC India March 2025 report, this marks a significant phenomenon of protectionism, as it has now slapped a 25% flat tariff on steel and a 25% new imports of aluminium, replacing the earlier 10% tariff.
Full report source: https://www.eepcindia.org
India’s Shrinking Steel Share in U.S. Market
India’s share in the steel import market for the U.S. was 4.4% in 2022 but fell by 0.5 percentage points to 3.9% in 2023; this was despite a constant increase all through 2022. A snapshot in numbers is given below:
🇺🇸 USA’s Steel Imports (Top Countries, 2023)
| Country | Share of U.S. Steel Imports (%) |
| Canada | 16.6% |
| China | 14.3% |
| Mexico | 13.4% |
| India | 3.9% |
Categories Most Affected by U.S. Tariffs
Now, tariffs cover wider categories for products falling under the chapters 72 and 73 of the U.S. import codes. Here is how the breakdown of the categories goes:
Key Product Categories Hit
| Product Category | Tariff Rate | India’s Share (%) | |
| Fabricated Steel Structures | 25% | 5.3% | |
| Steel Pipes, Tubes & Fittings | 25% | 12.3% | |
| Bright Bars & Misc. Products | 25% | 4.0% | |
| Fasteners, Hinges, Door Fittings | 25% | 2.6% |
These categories were initially able to hold no potential of competitively product-specific exclusion or quota arrangements which have now been dismantled.
Steel Exports Performance: India vs USA (2019–2023)
India’s steel exports to the U.S. comprised metals in the above categories; the volumes grew sharply after the Covid blow but have now started hitting the wall:
| Year | India’s Steel Exports to USA (US$ Mn) |
| 2019 | 348.9 |
| 2022 | 1154.0 |
| 2023 | 548.5 |
It is a 25% flat tariff, and while the growth is robust, as is qualified by a strong CAGR, it is another dagger in the future of small and medium Indian exporters.
🇮🇳 Aluminium Exports Also Under Pressure
India’s aluminium exports are also caught in the tariff mire, as there is now a high duty of 25% levied on in-gots, rods, wires, and all derivatives and finished products.
USA’s Demand vs. India’s Supply (5-year Avg)
| Category | India’s Avg Export (US$ Mn) | USA Avg Import (US$ Mn) | India’s Share (%) |
| Aluminium Long Products | 133.13 | 2,397.9 | 5.6% |
| Aluminium Ingots | 264.42 | 10,944.12 | 2.4% |
| Derivatives (automotive etc.) | 1,157.83 | 69,659.87 | 1.7% |
Source: EEPC India & USGS 2025
India’s aluminium exports to the USA fell by 25.6 percent in 2023 mainly because of what anticipations for market correction and tariff signals would prevail.
Why Is the U.S. Imposing These Tariffs?
The trump administration has roots on its strategy as follows:
- Delivering US domestic manufacturing protection
- Restricting China’s monopoly
- Promoting domestic production by reshoring policies
- Creating a bargaining power in bilateral trade negotiations
“High-tariff” by the U.S. translates to India, further pressuring towards some give-and-take or even new trade commitments.
What Lies Ahead for Indian Exporters?
Government Strategy
- The Indian government is pursuing fresh Free Trade Agreements (FTAs) with the EU, the UK, and the GCC.
- There is also the bilateral trade pact with the U.S. at preliminary stages to absorb the effects of Section 232.
- Indian industry bodies have also petitioned the Government for re-negotiations towards restoration of product exclusions.
Industrial Recommendations
- Diverse export markets would include WANA, SSA, and parts of Latin America.
- Investment towards value-added production and downstream processing.
- Membership in global trade fairs: EEPC India to participate in Hannover Messe, BAUMA (Germany), and Middle East Energy (Dubai).
The Bigger Picture: Trade Strategy and Policy Reform
However, these tariffs, in fact, are also a setback for Indian exporters because they create possibilities of rethinking trade strategies, portfo-lio diversification, and exploration of untouched geographies.
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- Business of Aluminium Beverage Cans | The Perfect Business to Start Your Journey in Aluminum Industry
- How to Start a Small Scale Business in India: A Step-by-Step Guide
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Final Takeaway
In 2025, the steel and aluminium exports of India to the USA will face strong headwinds, due to the impending larger tariff expansions and geopolitical strategies. Even while the above-mentioned conditions pose real threats, it is the strategic intervention along with cooperation from the government and diversifying the business that can help in riding through this storm.
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