Trump mulls doubling steel, aluminium levies to 50%; to impact Indian exports

President Donald Trump said on Friday he planned to increase tariffs on imported steel and aluminum to 50% from 25%, ratcheting up pressure on global steel producers and deepening his trade war. “We are going to be imposing a 25% increase. We’re going to bring it from 25% to 50% – the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States,” he said at a rally in Pennsylvania. Trump announced the higher tariffs just outside Pittsburgh, where he was talking up an agreement between Nippon Steel and US Steel. Trump said the $14.9 billion deal, like the tariff increase, will help keep jobs for steel workers in the US. He later posted on social media that the increased tariff would also apply to aluminum products and that it would take effect on Wednesday. Shares of steelmaker Cleveland-Cliffs Inc surged 26% after the market close as investors bet the new levies will help its profits. The doubling of steel and aluminum levies intensifies Trump’s global trade war and came just hours after he accused China of violating an agreement with the US to mutually roll back tariffs and trade restrictions for critical minerals. This will impact Indian exporters, as it would hurt their profitability, think tank GTRI said. In 2024-25, India exported USD 4.56 billion worth of iron, steel, and aluminium products to the US, with key categories, including USD 587.5 million in iron and steel, USD 3.1 billion in articles of iron or steel, and USD 860 million in aluminium and related articles. “These exports are now exposed to sharply higher US tariffs, threatening the profitability of producers and exporters,” GTRI said. India has already issued a formal notice at the WTO signalling its intention to impose retaliatory tariffs in response to the earlier steel tariffs. Court keeps freeze on workforce cuts An appeals court on Friday refused to freeze a California judge’s order halting the Trump administration from downsizing the federal workforce, which means that DOGE-led cuts remain on pause for now. The administration had sought an emergency stay of an injunction issued by US Judge Susan Illston of San Francisco in a lawsuit brought by labour unions and cities, including San Francisco and Chicago. The judge’s order questioned whether Trump’s administration was acting lawfully in trying to pare the federal workforce.

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