Saturday, March 29, 2025
Donald Trump has triggered a new trade storm. The U.S. has imposed a 25% tariff on Indian steel and aluminium. In response, India plans to hit back under WTO rules.
On Monday, India proposed retaliatory tariffs against the U.S. The step comes as a direct reply to recent American duties. According to the World Trade Organization, the U.S. move could affect $7.6 billion worth of Indian exports. It may result in $1.91 billion in new duty collections.
Earlier in April, India requested consultations with the U.S. at the WTO. This came after the U.S. reintroduced metal import duties. India argued the move violated WTO’s Agreement on Safeguards.
The U.S. had first imposed steel and aluminium duties in March 2018. These included 25% on steel and 10% on aluminium. Later, in January 2020, the tariffs were extended. Then, in February 2025, the U.S. revised the rules again. The new rates took effect on March 12, 2025. This time, the steel duty was raised again to 25%.
India has now proposed suspending concessions on U.S. goods. This step mirrors what the U.S. did. According to trade officials, India’s move is within WTO limits. Moreover, it aims to protect India’s trade interests without escalating tensions.
The news has shaken investors, especially in the metals sector. On Tuesday, several metal stocks saw movement:
Hindalco Industries dropped 2% to ₹641.95.
JSW Steel traded at ₹1,002.10 with slight losses.
Hindustan Zinc fell 1% to ₹433.10.
Tata Steel and Vedanta saw small gains.
SAIL (Steel Authority of India Ltd) dropped to ₹118.03.
Clearly, investor sentiment has weakened. The tariff dispute could impact India’s export-driven companies.
