US tariffs continue to hit Indian steel, aluminium exports

India’s steel, aluminium, and copper sectors will continue to face steep US tariffs, as these strategic metals remain subject to US’ Sec 232 provisions tied to national security. While the reciprocal tariff on Indian goods has been reduced from 25 per cent to 18 per cent, tariffs on steel, aluminium, and copper remain at 50 per cent, offering no immediate relief.

Although India’s exports of these metals to the US were around $5 billion in FY25, the 50 per cent tariff makes Indian products significantly more expensive than steel and aluminium imports from the UK, which benefit from a lower 25 per cent tariff.

Within this landscape, Tata Steel’s Indian operations do not export to the US, though its UK unit does. In contrast, JSW Steel, with facilities in Ohio and Texas, produces steel locally, shielding it from import tariffs. Hindalco exports negligible aluminium and no copper from India to the US due to strong domestic demand. However, its American subsidiary Novelis manufactures aluminium locally, so most US sales are not subject to tariffs. Novelis still imports some aluminium from its Canadian facility, which faces a 50 per cent US tariff, affecting margins. To mitigate this, Novelis is expanding US production and optimising costs to largely offset the impact.

On Tuesday, aluminium trade body ALEMAI noted that the reciprocal tariffs help only select sectors and provide no relief for aluminium, iron, and steel exports, which continue to face the 50 per cent US duty under Sec 232, doubled in June 2025. As a result, Deloitte India partner Gulzar Didwania said, “an estimated portion of India’s exports to the US will continue facing higher tariffs despite the trade deal.”>