The Federation of Indian Mineral Industries highlights that this situation presents no real benefit to the aluminium industry, as existing tariffs stay unchanged. In the financial year 2023-24, India’s total mineral and non-ferrous metal exports reached USD 17,474 million, with the US accounting for a significant portion.
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REUTERS/Alexander Manzyuk
With the US putting a 90-day pause on implementing reciprocal tariffs on most nations, including India, aluminium producers are closely monitoring the dynamic situation with respect to changes in trade flows, industry analysts said on Thursday.
India’s steel exports to the US is not more than two per cent of its primary aluminium production or four per cent of its total output shipments, they said.
However, there is a need to keep a close watch on protecting the domestic market from possible dumping from other nations such as China and the Middle East, they added.
Amid a global market meltdown, US President Donald Trump on Wednesday abruptly backed down on his tariffs on most nations for 90 days, but raised the tax rate on Chinese imports to 125 per cent.
However, the 10 per cent tariff that came to effect on April 5 will be there. The US, while announcing a sweeping reciprocal tariffs on most of its trade partners on April 2, had imposed additional import duty of 26 per cent on India.
The aluminium industry is not covered under the reciprocal tariff order, but the sector has already been facing an additional 25 per cent levies announced by the US administration in March this year.
B K Bhatia, additional secretary general of FIMI (Federation of Indian Mineral Industries), is of the view that tariff pause is not going to have any benefit for the aluminium industry “as tariff imposed at 25 per cent earlier on aluminium and steel remains unchanged and was not part of the reciprocal tariff”.
During the financial year 2023-24, India’s total exports of minerals and non-ferrous metals (other than steel) stood at USD 17,474 million. Out of this, exports to USA accounted for USD 1,291 million which is about 7.4 per cent of the total exports of this sector.
The major share of exports is accounted for by aluminium and its articles, worth about USD 946 million, followed by copper and articles, worth USD 292 million and baryte, worth USD 78 million.
Published on April 10, 2025
