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Home Manufacturing

Trade Challenges 2025: India’s Steel Industry Faces U.S. Export Barriers

by Entrepreneur Team
April 25, 2025
in Manufacturing
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President Donald Trump’s administration has made a major trade challenge for 2025 by announcing a stricter trade policy under Section 232 tariffs that will take effect on March 12, 2025, and will directly affect India’s exports of steel and aluminum. All prior exclusions have been lifted, and these tariffs, which have been a cause for concern since 2018, have now been increased and extended.

According to EEPC India’s March 2025 report, the 25% flat tariff on steel and a new 25% tariff on aluminum imports, replacing the earlier 10%, mark a protectionist turn with far-reaching consequences.

Full report source: https://www.eepcindia.org

Table of Contents

Toggle
  • India’s Shrinking Steel Share in U.S. Market
  • Categories Most Affected by U.S. Tariffs
  • Key Product Categories Hit
  •  Steel Exports Performance: India vs USA (2019–2023)
  • Aluminium Exports 
  • USA’s Demand vs. India’s Supply (5-year Avg)
  •  Why Is the U.S. Imposing These Tariffs?
  •  What Lies Ahead for Indian Exporters?
    •  Government Strategy
    • Industrial Recommendations
    •  The Bigger Picture: Trade Strategy and Policy Reform
  •  How NPCS Helps Entrepreneurs Thrive in Uncertain Times
  •  Using Strategy to Gain Strength in Difficult Times

India’s Shrinking Steel Share in U.S. Market

Despite consistent growth until 2022, India’s share of the U.S. steel import market fell from 4.4% in 2022 to 3.9% in 2023. Below is a data-driven snapshot:

 USA’s Steel Imports (Top Countries, 2023)

CountryShare of U.S. Steel Imports (%)
Canada16.6%
China14.3%
Mexico13.4%
India3.9%

Categories Most Affected by U.S. Tariffs

The trade challenges and tariffs now cover a broader range of products under Chapters 72 and 73 of the U.S. import code. Here is a breakdown of the affected categories:

Key Product Categories Hit

Product CategoryTariff RateIndia’s Share (%)
Fabricated Steel Structures25%5.3%
Steel Pipes, Tubes, & Fittings25%12.3%
Bright Bars & Misc. Products25%4.0%
Fasteners, Hinges, Door Fittings25%2.6%

These categories previously enjoyed a competitive advantage due to product-specific exclusions or quota arrangements that have now been revoked.

 Steel Exports Performance: India vs USA (2019–2023)

India’s steel exports to the U.S. in affected categories surged post-COVID but have started facing heat:

YearIndia’s Steel Exports to USA (US$ Mn)
2019348.9
20221154.0
2023548.5

Despite a strong CAGR, the flat 25% tariff in trade challenges will undercut future growth, particularly for small and medium Indian exporters.

Aluminium Exports 

India’s aluminum exports are also caught in the tariff net, with a steep 25% levy now on ingots, rods, wires, derivatives, and finished products.

USA’s Demand vs. India’s Supply (5-year Avg)

CategoryIndia’s Avg Export (US$ Mn)USA Avg Import (US$ Mn)India’s Share (%)
Aluminium Long Products133.132,397.95.6%
Aluminium Ingots264.4210,944.122.4%
Derivatives (automotive, etc.)1,157.8369,659.871.7%

Source: EEPC India & USGS 2025

 India’s aluminum exports to the USA declined by 25.6% in 2023, largely due to anticipatory market corrections and tariff signals.

 Why Is the U.S. Imposing These Tariffs?

The Trump administration’s strategy appears to be rooted in:

  1. Protecting U.S. domestic manufacturing
  2. Limiting China’s dominance
  3. Encouraging local production via reshoring policies
  4. Creating leverage in bilateral trade negotiations

India is seen as a “high-tariff” nation by the U.S., increasing pressure for reciprocal concessions or new trade agreements.

 What Lies Ahead for Indian Exporters?

 Government Strategy

  • The Indian government is pursuing new Free Trade Agreements (FTAs) with the EU, UK, and GCC.
  • A bilateral trade pact with the U.S. is also in early stages to mitigate Section 232 impacts.
  • Indian industry bodies have urged diplomatic intervention to reinstate product exclusions.

 

Industrial Recommendations

  • Diversify export markets (WANA, SSA, Latin America).
  • Invest in value-added production and downstream processing.
  • Join global trade fairs: EEPC India will participate in Hannover Messe, BAUMA (Germany), and Middle East Energy (Dubai).

 The Bigger Picture: Trade Strategy and Policy Reform

While these tariffs are a setback, they also provide Indian exporters an opportunity to rethink trade strategies, diversify product portfolios, and explore untapped geographies.

Read more actionable insights for industrial entrepreneurs on our platform:
https://www.entrepreneurindia.co/blogs

 How NPCS Helps Entrepreneurs Thrive in Uncertain Times

At Niir Project Consultancy Services (NPCS), we assist startups and entrepreneurs to identify, plan, and launch industrial ventures with precision and confidence.We provide Market Survey cum Techno-Economic Feasibility Reports

Our reports cover:

  • Manufacturing Process
  • Machinery & Raw Materials
  • Flow Diagrams & Product Mix
  • Detailed Project Financials

We guide you on project selection, cost, return on investment, and scalability.

 Explore industrial projects and startup ideas here: https://www.niir.org/
Watch insightful project breakdowns on our YouTube Channel: https://www.youtube.com/@NIIRproject


 Recommended Reads from NPCS Blog:

  1. How to Start Aluminium Recycling Business
  2. Export Business Ideas for Small Entrepreneurs
  3. Top 50 Manufacturing Business Ideas for 2025
  4. Setting Up a Profitable Steel Fabrication Business
  5. Understanding Carbon Credit Business in India

 Using Strategy to Gain Strength in Difficult Times

India may face trade challenges in 2025 when it comes to exporting steel and aluminum to the United States, but these obstacles can be surmounted with careful planning, government assistance, and corporate diversification. Our goal at NPCS is to assist you in creating a strong , forward-thinking industrial business. 

Explore startup opportunities: https://npcsblog.com/


Get customized project guidance: https://www.entrepreneurindia.co/


Read our latest updates: https://www.niir.org/blog/

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