FIEO concerned over US steel & aluminium tariff hike; Seeks diplomatic engagement to safeguard Indian steel exports
The Federation of Indian Export Organisations (FIEO) has expressed concern over the recent announcement by the US President to double import tariffs on steel and aluminium from 25% to 50%, citing potential disruption to India’s steel and aluminium exports, particularly in value-added and finished steel products and auto- components.
City Air News
May 31, 2025 10:17
0
The Federation of Indian Export Organisations (FIEO) has expressed concern over the recent announcement by the US President to double import tariffs on steel and aluminium from 25% to 50%, citing potential disruption to India’s steel and aluminium exports, particularly in value-added and finished steel products and auto- components.
Reacting to the development, S C Ralhan, President, FIEO stated that the proposed increase in US steel and aluminum import tariffs will have a significant bearing on India’s steel exports, especially in semi-finished and finished categories like stainless steel pipes, structural steel components, and automotive steel parts. These products are part of India’s growing engineering exports, and higher duties could erode our price competitiveness in the American market.
India exported approximately US$6.2 billion worth of steel and finished steel products to the US in FY2024-25 including a wide range of engineered and fabricated steel components and about US$ 0.86 billion of aluminum and its products. The US is among the top destinations for Indian steel manufacturers, who have been gradually increasing market share through high-quality production and competitive pricing.
President FIEO further added that while we understand that the decision stems from domestic policy considerations in the US, such sharp increases in tariffs send discouraging signals to global trade and manufacturing supply chains. We urge the Government to take up the issue at the bilateral level to ensure that Indian exporters are not unfairly disadvantaged more so far the shipments, as 25% additional duty will be a huge burden, which is difficult to be absorbed by the exporter/importer.
FIEO Chief also emphasized the need for Indian exporters is to diversify their markets and invest in higher-grade value-added products to mitigate the impact of such protectionist measures.
