Trump says he will announce 25% duties on steel, aluminum imports; threatens more to come
US President Donald Trump has said that he will announce a 25% duty on all steel and aluminum imports, a long-standing contentious category of trade between India and the US.
Trump stated on Sunday that he will announce the tariffs on Monday, covering imports from all countries.
“Any steel coming into the United States is going to have a 25% tariff, aluminum too,” Trump said while flying to New Orleans for the Super Bowl.
He added that reciprocal tariffs would also be introduced for all countries.
“Very simply, if they charge us, we charge them,” he said.
Those tariffs will be announced on Tuesday or Wednesday and take effect immediately, he added.
The tariff threat came ahead of Prime Minister Narendra Modi’s visit to Washington this week.
India exported steel worth $4 billion and aluminum worth $1.1 billion during 2023.
Steel and aluminum trade has been a contentious and complicated issue for India and the US, with Washington accusing New Delhi of subsidizing those exports.
During PM Modi’s visit to Washington in 2023, the two countries agreed to settle six disputes before the World Trade Organization involving metals.
However, in October, the US imposed duties of up to 39.5% on certain categories of aluminum imports.
It is unclear how the newly announced 25% tariff will apply to these categories.
In the final days of former President Joe Biden’s administration in January, the US agreed to waive additional tariffs imposed during Trump’s first administration, which ranged between 10% and 25%, with a joint mechanism to monitor exports.
In return, India agreed to reduce tariffs on apples, walnuts, and almonds.
India’s total exports to the US stood at $87.4 billion, while imports from the US were $47.8 billion last year, leaving a significant trade surplus in India’s favor, according to the US Census Bureau.
Trump has focused on US trade deficits and has vowed to reverse them through tariffs.
During his first term, he used the 100% duty on Harley Davidson motorcycles as an example of why he considers India a “tariff king.”
Earlier this month, India symbolically reduced duties on heavier Harley Davidson models from 50% to 30% and from 50% to 40% for other models.
However, in more significant categories like satellite ground equipment and certain scrap and waste materials, India eliminated duties while reducing them in some other groups.
