Donald Trump to slap 25% tax on all imports of steel and aluminium into US
11 Feb 2025
US President Donald Trump on Sunday said he will approve 25 per cent tariffs on all steel and aluminium imported into the United States, escalating the tariff war he initiated with taxes on imports from Canada and Mexico.
The proposed tax on steel and aluminium imports will have greater impact on India, which exports large quantities of both steel and aluminium to the US.
Trump announced this on Sunday while on a flight from Florida to New Orleans. He told reporters accompanying him that all steel coming to the United States will be subjected to a 25 per cent import duty.
This will apply to aluminium imports as well, Trump said, adding the rates will be determined by the commerce department.
India exported steel valued at $4 billion to the US in the financial year 2022-23 and aluminium valued at $1.1 billion.
Earlier, in 2018, the US imposed a 25 per cent import duty on steel products and 10 per cent on certain aluminium products citing national security interests. In June 2019, India retaliated with additional customs duties on 28 American products.
Soon after assuming office, Trump announced 25 per cent tariffs on Canada and Mexico and 10 per cent on China the three largest trading partners of US. This was met with retaliatory tariffs by Canada and Mexico on US goods.
Reports also attribute the ongoing sell-off of Indian equities by foreign portfolio investors on the stock markets to the fear of Trump escalating a latent trade war by imposing tariffs across products and countries.
