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    Trump doubles metal tariffs to 50% but skips UK. What it means for India

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    US President Donald Trump has announced an increase in tariffs on imported steel and aluminium, raising them from 25% to 50%. This change, effective from June 4, is primarily aimed at protecting US steelmakers and the domestic manufacturing sector.

    The decision imposes potential challenges for trade partners, but excludes the United Kingdom from the tariff hike due to an existing trade agreement.

    The UK’s exemption follows discussions between British Trade Minister Jonathan Reynolds and US Trade Representative Jamieson Greer, resulting in an agreement to implement a tariff deal promptly.

    UK Prime Minister Keir Starmer and Trump further agreed to reduce tariffs on UK imports of cars and steel, while the UK would lower its own tariffs on beef and ethanol. “We’re pleased that as a result of our agreement with the US, UK steel will not be subject to these additional tariffs,” said a UK spokesperson.

    In contrast, India, which exports approximately $5 billion worth of steel, aluminium, and related goods to the US annually, is expected to face repercussions.

    The Engineering Export Promotion Council of India has expressed concern over the tariff increase, cautioning that this could make Indian exports more expensive, potentially leading to a decrease in shipments.

    “This may not be the right time for such unilateral tariffs, especially when BTA talks are underway,” stated Pankaj Chadha, Chairman of EEPC India. He said that the proposed hike could jeopardise engineering exports, urging India to seek a similar waiver as the UK during ongoing bilateral trade agreement negotiations.

    Trump justified the tariff increase by asserting it would “further secure the steel industry” in the US, suggesting that at 50%, foreign competitors would find it challenging to compete.

    Although India is not a major exporter to the US, Union Minister HD Kumaraswamy acknowledged some effects, and said, “Minor impact will be there…A minor problem is there because we are not exporting in a big way.”

    Kumaraswamy highlighted that consignments already en route to the US, arriving post June 4, may incur the new 50% tariff, potentially causing disruption.

    Published On:

    Jun 4, 2025

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