US Tariffs to Continue on Indian Steel, Aluminium and Copper Despite Trade Deal

India’s steel, aluminium and copper sectors will continue to face steep import duties in the United States, even as the latest India-US trade understanding brings relief to several other categories of Indian exports. Under the agreement, reciprocal tariffs on Indian goods have been reduced from 25 percent to 18 percent. However, strategic metals remain outside the scope of this relief.

Steel, aluminium and copper continue to attract a 50 percent tariff under the US Section 232 provisions, which are linked to national security considerations. These duties were doubled in June 2025 and remain unchanged, offering no immediate respite for Indian producers supplying to the American market.

India’s exports of steel, aluminium and copper to the US were valued at around 5 billion dollars in FY25. With a 50 percent tariff, Indian metal products have become significantly less competitive compared to imports from countries such as the United Kingdom, which currently face a lower 25 percent duty on similar products.

The impact, however, varies across Indian metal majors. Tata Steel’s Indian operations do not export steel to the US, although its UK arm supplies to the American market. JSW Steel, on the other hand, has manufacturing facilities in Ohio and Texas, allowing it to cater to US demand through local production and avoid import tariffs.

In aluminium, Hindalco exports negligible volumes from India to the US due to strong domestic demand. Its American subsidiary, Novelis, manufactures aluminium locally, shielding most of its US sales from tariffs. However, aluminium imported by Novelis from its Canadian facilities continues to attract the 50 percent duty, impacting margins. The company is addressing this through capacity expansion in the US and cost optimisation measures.

Industry bodies remain cautious. The Aluminium and Light Engineering Manufacturers Association of India has said that reciprocal tariff reductions benefit only select sectors and do little for steel, aluminium and iron exporters. Experts note that a significant share of India’s metal exports to the US will continue to face elevated duties despite the broader trade agreement.