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US 25% Tariff on Steel and Aluminium: Impact on India

13 March 20251 min read
INTERNATIONAL AFFAIRSUS 25% Tariff onSteel andAluminium: Impacton India13 March 2025safalsetu.com

Why in the news

President Trump formally lifted tariffs on all steel and aluminium imports to 25%, saying it would create U.S. factory jobs, amid market jitters over his changing tariff threats.

Key facts

  • Effective 12 March 2025; additional duty 25%.
  • Unlike Trump’s first term, no country is exempt.

Impact on India

ItemFigure
Steel and aluminium exports to U.S.$5 billion
Steel products (Chapter 73), mainly MSMEs$3 billion
Goods already in transit$1 billion (voyage of about 60 days)
  • Stainless steel and industrial steel fasteners face the larger hit.
  • Large carbon steel makers are barely affected.

Reactions

  • Steel Secretary Sandeep Poundrik: minimal impact on big producers.
  • The EU announced retaliatory tariffs on U.S. farm and industrial goods.
  • Trade expert Ajay Srivastava urged rethinking U.S. trade ties and reviving 2019-style countermeasures.
  • India’s muted response contrasts with the EU’s quick retaliation.

Exam angle

  • Tariff: 25% on steel and aluminium, from 12 March 2025.
  • Worst affected in India: MSME stainless steel exporters.

Test yourself

1. What additional tariff did the U.S. impose on all steel and aluminium imports from 12 March 2025?

President Trump raised tariffs on steel and aluminium imports to 25%.

2. Which Indian segment is expected to face the severest impact from the U.S. steel tariff?

Large carbon steel firms export little to the U.S., so MSMEs bear the brunt.

3. Who, as Steel Secretary, said the U.S. tariffs would have limited impact on large Indian carbon steel producers?

Steel Secretary Sandeep Poundrik made the statement.

This topic is part of Daily Current Affairs 13 March 2025 (18 topics).

All topics of the dayDay quizMarch 2025

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