New York, Feb 10, 2025, IANS
On February 10, US President Donald Trump announced plans to impose a 25% tariff on all steel and aluminum imports, reigniting a long-running trade dispute with India. Speaking while en route to New Orleans for the Super Bowl, Trump stated that he would unveil the tariffs on Monday, which would affect imports from all nations. He emphasized, “Any steel coming into the United States is going to have a 25 percent tariff, aluminum, too.” Trump also mentioned that reciprocal tariffs would be instituted for all countries, saying, “Very simply, if they charge us, we charge them.”
The tariffs are expected to be announced within the next few days and take immediate effect. This development arrives just before Prime Minister Narendra Modi’s upcoming visit to Washington. In 2023, India exported steel valued at $4 billion and aluminum worth $1.1 billion to the US. The trade of these metals has been fraught with tension, with the US accusing India of subsidizing its exports.
During PM Modi’s previous visit to the US in 2023, the two nations agreed to resolve six disputes regarding these metals at the World Trade Organization. Nonetheless, in October, the US imposed duties of up to 39.5% on certain aluminum imports. It remains unclear how Trump’s announced 25% tariff will intersect with these existing duties.
In the final days of former President Joe Biden’s tenure in January, the US agreed to lift some additional tariffs set by Trump’s initial administration, which ranged from 10% to 25%, while establishing a monitoring mechanism for exports. In exchange, India consented to lower tariffs on apples, walnuts, and almonds. According to the US Census Bureau, India’s total exports to the US reached $87.4 billion, while imports amounted to $47.8 billion last year, resulting in a significant trade surplus for India.
Trump has been focused on reducing the US trade deficit and plans to do so through tariffs. During his initial term, he highlighted the 100% duty on Harley Davidson motorcycles as a reason for labeling India a “Tariff King.” This month, India symbolically lowered tariffs on various heavier Harley Davidson models from 50% to 30% and from 50% to 40% for other models. However, in key areas such as satellite ground equipment and specific categories of scrap and waste, India has eliminated certain duties while cutting others.