US President Donald Trump's 25% tariff on all steel and aluminium imports is set to shake up global trade. These tariffs are expected to impact some of the largest exporters of these metals to the United States, causing potential economic disruptions.
According to the London-based Financial Times newspaper, following 10 countries were the top suppliers of steel and aluminium to the US in 2023, and they are likely to be hit hardest by these tariffs. India, ranked No. 8, has much at stake. However, among the 10, Canada, China and Mexico are the top three to be suffering the most. The others are: South Korea, Brazil, Germany, Taiwan, Japan and Italy.
India's exports of these two metals to the US is valued at around $4 billion. India ranks eighth among the top exporters of steel and aluminium to the US, meaning it won’t be spared from the impact of these tariffs. With India’s steel industry already facing global competition, higher US tariffs could lead to a slowdown in exports to one of its key markets and also increased production costs for Indian manufacturers reliant on US imports.
More trade diversification efforts, with India possibly increasing exports to Europe and Southeast Asia. However, India might also benefit if US buyers look for alternative suppliers outside of China and Canada.
These 10 countries are bracing for economic consequences of the tariffs. While some nations may negotiate exemptions or retaliate with counter measures, others, like India, may focus on trade diversification and new export strategies.
As global trade shifts, the steel and aluminium industry will likely undergo major realignments, impacting manufacturers, consumers, and international trade policies in the coming months.