Trump Tariffs on India: Key News, Impact & Current Outlook

Last Updated: August 2025 | Author: Shahalam, Analyst at parikshasoochna.com

Trump Tariffs on India – US Tariff News, 50 Percent Duty Impact and Trade Outlook 2025

Trump tariffs on India: U.S. imposed up to 50% duties under Donald Trump, impacting steel, aluminum, and key exports.

During the Trump administration (Trump tariffs on India), the U.S. imposed up to 50% tariff on India—notably steel and aluminum. These measures triggered long-term trade friction. India retaliated with duties on U.S. goods. Recent news: India’s trade ministry (MEA) still negotiates tariff relief, and Biden-era adjustments have since eased some tariffs but not all.

What Were Trump Tariffs, and How Did They Affect India?

In 2018–2019, Donald Trump imposed aggressive tariffs on steel (25%) and aluminum (10%) under Section 232. Though national security–justified, US tariffs on India heavily impacted export-oriented Indian manufacturers.

  • India qualified for exclusion initially, but later lost it.
  • Tariffs on iron and steel increased Indian export costs by up to 50%.
  • MEA statements often criticized the move as protectionist.

Timeline of Trump‑Era Tariffs on India

DateTariff TypeImpact on India
Mar 2018Steel 25%Immediate rise in U.S. import costs
Jun 2018Aluminum 10%Premium on India’s aluminum exports
Oct 2018Exclusion revokedAll Indian suppliers subjected to tariffs
May 2019India retaliatesDuties on U.S. apples, walnuts, lentils
2021–2022Ongoing dialogueMEA pushes for tariff removal exemptions

Why Tariffs Create Tensions Between India & the U.S.

  • Economic Loss for Exporters: Indian steel mills lost price competitiveness.
  • Higher Inflation: End consumers in U.S. may face cost increases.
  • Geopolitical Strain: MEA press releases condemned the unilateral duress.
  • Local U.S. Lobbying Impact: American steel producers demanded protection.

Did Trump’s Tariffs Resolve or Escalate Trade Friction?

  • Short-term gains for U.S. steel producers.
  • Long-term impact: Export stagnation in Indian manufacturing.
  • Retaliatory tariffs and FTA negotiations remain unresolved.
  • The Biden administration eased select tariff on India items, but many measures persist.

Tonight’s Trump Tariff News & Current Outlook

  • No fresh 2025 tariffs under Trump; shocks subsided.
  • However, talks continue over reintroducing reciprocal tariffs.
  • India tariff news outlets report ongoing negotiation, especially in tech and agricultural imports.
  • India-US tariff dialogue resumes around clean energy and critical minerals solidarity.

What Experts—Including Shashi Tharoor—Have Said

MP Shashi Tharoor, in Parliament and op-eds, warned that Trump’s supply-side tariffs would disrupt global value chains.

  • He urged MEA to seek WTO disputes.
  • He argued trade must remain rules-based, not transactional.

How Was India Affected in Trade Volume?

Indian exports of steel and iron to U.S. dropped ~40% in 2019.
Imports from U.S. stabilized, but retaliatory duties impacted pulses/walnuts.
Over time, India diversified markets—boosting exports to EU, Middle East instead.


What Does ‘50% Tariff on India’ Mean?

This refers to the combined impact—though steel was 25%, downstream products/export duty structure meant final cost shocks of ~50%.
Example: Coated steel products, export logistics, tariff overlap led to effective tariff levels doubling.


Is Trump Tariff History Still Relevant Today?

Yes. It influences:

  • Present tariff news framing
  • Negotiation priorities in current India–U.S. trade dialogues
  • Emerging policies under next U.S. administration
  • Public memory and diplomatic posture

FAQs

Q1: What is tariff by Trump?

A1: Refers to trade duties imposed by Trump’s admin on metals to protect U.S. industry.

Q2: Did Trump’s tariffs only impact India?

A2: No, they applied globally—but India was among the largest affected exporters.

Q3: Does the U.S. still charge tariffs on Indian goods?

A3: Some measures remain. New ones can re-emerge if trade disputes escalate.

Q4: Who is Shashi Tharoor and why is he relevant?

A4: Indian MP and former diplomat who criticized tariff policy and advocated WTO disputes.

Q5: Can India take this to WTO?

A5: Yes. India and China filed WTO poll disputes in 2018 over Section 232 sanctions.

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