The decision of US President Donald Trump on steel and aluminum may have a direct impact on India. According to the report of Global Trade Research Initiative (GTRI), this decision is threatening India’s metal exports worth $ 4.56 billion (about 38,000 crore).

What is the matter?

On 30 May 2025, Donald Trump announced that the tariff on steel and aluminum imports in the US would be increased from 25 per cent to 50 per cent. This new rule will be applicable from 4 June 2025. Trump has taken this decision citing US “national security”.

What will be the impact on India?

India exported a total of $ 4.56 billion steel and aluminum goods to the US in FY 2025. This includes $ 587.5 million iron and steel, $ 3.1 billion iron or steel goods and $ 860 million aluminum and products related to it.

Now that they will be charged 50 percent tax in America, then Indian goods will become more expensive there. This will reduce the competition of Indian companies and can cause damage to their business.

What is India doing?

India has given information about this decision to the World Trade Organization (WTO) and it is believed that the government is preparing to take retaliation.

What does GTRI say?

GTRI says that this decision will harm not only business but also the environment. There is a large amount of carbon in making steel and aluminum. Where the world is investing in Green Technology, there is no concern about the environment in this decision of Trump.

What is Trump’s intention?

Experts believe that this decision is part of America’s ‘Economic Nationalism’ i.e. “America First” policy. This can benefit domestic industries in America, but it is a danger bell for global trade and climate goals.

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The biggest supply of crude oil for India is now growing rapidly not only from the Middle East, but also from America. In April 2025, the US became India’s fourth largest crude oil supplier and has overtaken the United Arab Emirates (UAE) in this ranking.

According to data from Energy cargo tracking firm Vortexa, India’s purchase of crude oil from the US doubled to 0.33 million barrels per day (MBD), compared to 0.17 MBD last year.

Change came after Trump-Modi’s conversation

This growing energy trade is also being linked to Donald Trump and Narendra Modi’s conversation in Washington in February. At that time the two leaders emphasized on improving bilateral trade imbalance. Foreign Secretary Vikram Misri also indicated that India’s energy purchase could increase from US to $ 15 billion to $ 25 billion.

Now Russia gives India the most oil

Although the presence of America is increasing, but the largest oil supplier for India is still Russia, whose share was 37.8 percent in April. This is followed by Iraq (19.1 fees), Saudi Arabia (10.4 percent), and now America (7.3 percent). UAE’s stake has fallen by 6.4 per cent, which was at number four first. According to a report, the supply was slightly lower in April after the UAE’s huge shipment in March.

Why did American oil increase in India? Know the reason behind

Actually, the export of oil from America to India increased because the shipments sent from America to Europe have reduced. Europe is now looking towards light oil options near it and some refineries are also closed there. As a result, America shifted its focus to Asia, especially India. In April, India bought about 8 percent of the total oil exports of America.

Why are Saudi and UAE lagging behind?

The reason for the decline of older suppliers like Saudi Arabia and UAE is their strategic shipment policy. UAE sent more oil in March, so there was a slight decrease in April. In addition, Saudi Arabia is currently trying to increase its stake in East Asia and Europe. However, Saudi Arabia’s supply may return soon. OPEC+ Group (which includes 23 countries like Saudi and Russia) plans to increase 4 lakh barrels of additional production per day in May and June. The largest part of this is expected to come from Saudi Arabia itself.

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