No New US Tariffs on Indian Steel, Aluminium, and Auto Sectors

Following the announcement by US President Donald Trump about the move of reciprocal tariffs of 26% on Indian products, Indian steel and automotive manufacturers won’t be subject to other trade barriers beyond the existing 25% import duties.

A White House fact sheet issued just after Trump made his announcement on Wednesday also said steel, aluminium, automobile, and auto parts industries were already subjected to a blanket 25% tariff and would not get new tariffs under the new tariffs. This explanation is a relief for Indian exporters in these sectors, and there will not be any further lens scrolling.

The move illustrates the complex trade dynamics between the two countries. Though India is now subject to a 26% reciprocal tariff on certain exports to the US, major industrial sectors like metals and automobiles are relatively untouched apart from any existing duties.

The latest tariff decision from Trump comes as he has reaffirmed strong ties with India, using the announcement to repeatedly refer to Prime Minister Narendra Modi as “my friend.” Such trade-related adjustments seem designed to balance the strategic economic interests while short-circuiting any serious disruptions of key supply chains.

For India, the exclusion of fresh levies on steel and auto exports is a stabilising influence that is welcome as both are big-ticket contributors to the economy. While complications due to a current 25% tariff still exist, escaping an additional 26% duty is a blessing among industry experts.

While trade competition spirals into war, the question now is how this will impact India-US relations, since tariffs are changing everywhere.