Trump's move to double tariffs on aluminium imports to hurt sector: AAI

Aluminium industry body AAI has expressed concerns that US President Donald Trump's announcement to double tariffs on aluminium imports in that country will hurt the Indian manufacturers who are already under pressure from surging low-cost imports.

On May 30, Trump announced that he would double the existing 25 per cent tariffs on aluminium imports from June 4.

"The 50 per cent tariff announced by Trump will damage the Indian aluminium industry, which is already under pressure from surging low-cost imports," Aluminium Association of India (AAI) said.

The metal has strategic importance to the country and critical to industries such as defence, aerospace, energy transition, telecommunications, power and construction, it said, adding that both primary aluminium and poor quality scrap are entering the country in large volumes, threatening to create a surplus, suppress domestic prices, and undercut the viability of domestic producers. 

Though the government just announced a 12 per cent provisional safeguard duty on certain steel imports, AAI said there should be duty guardrails for the aluminium industry as well, which has so far invested more than Rs. 1.5 lakh crore to set up the current domestic primary aluminium capacity of 4.2 million tonnes per annum (MTPA).

FIMI Director General B K Bhatia stated that the major share of Indian exports of aluminium is accounted by US valuing about USD 946 million. A further increase in tariff is bound to have adverse impact on Indian aluminium exports market.

"We are hopeful that this issue will get resolved during ongoing trade negotiations between India and USA," he said.

In 2024-25, India exported iron, steel, and aluminium products worth USD 4.56 billion 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.

This proposed hike is tariff comes under Section 232 of the US Trade Expansion Act of 1962, which allows the president to impose tariffs or other trade restrictions if imports are deemed a threat to national security.

Trump originally invoked this provision in 2018 to set the 25 per cent tariff on steel and 10 per cent on aluminium. He raised tariffs on aluminium to 25 per cent in February 2025.