US tariffs continue to severely impact India's steel and aluminum exports
February 4, 2026
Due to the fact that strategic metals are still subject to the "232" clause of the United States, the steel, aluminum and copper industries in India continue to face high tariffs imposed by the United States. The reciprocal tariffs imposed by the United States on Indian goods have decreased from 25% to 18%, but the tariffs on steel, aluminum and copper remain at 50%, and this issue cannot be resolved in the short term.
In the fiscal year 2025, India's exports of the aforementioned metals to the United States were valued at approximately 5 billion US dollars. However, the 50% tariff imposed on these exports made it impossible for India to have a price advantage over the UK when exporting the same products. The UK's imports of steel and aluminum enjoy a lower 25% tariff.
In this context, the Indian operations of Tata Steel do not export products to the United States, but its British subsidiary does. In contrast, JSW Steel has factories in Ohio and Texas, and its steel production is carried out locally, thus not being affected by import tariffs. Due to strong domestic demand, Hindalco, the Indian aluminum industry company, has very little aluminum exports to the United States and zero copper exports. However, its American subsidiary, Novelis, produces aluminum locally, so most of its sales in the United States are not affected by tariffs. Novelis still imports some aluminum from its Canadian factory, and this part of the import is subject to a 50% US tariff, which affects its profit margin. To alleviate this impact, Novelis is expanding its production capacity in the United States and optimizing costs to minimize the impact of tariffs as much as possible.
