India's aluminium exports to the US likely to drop due to tariffs, industry says

National Aluminium

10/02/2025 12:28

By Neha Arora
       NEW DELHI, Feb 10 (Reuters) - India's aluminium
shipments to the U.S., its top export market for the metal, will
likely drop due to tariffs proposed by Washington, prompting
producers to look at other markets such as Europe, industry
executives and a government source said on Monday.
    U.S. President Donald Trump said on Sunday he would
introduce new 25% tariffs on all steel and aluminium imports
into the United States in another major escalation of his trade
policy overhaul. He also said he would announce reciprocal
tariffs on Tuesday or Wednesday.
    Those measures would drag down India's aluminium exports to
the United States, affecting the profitability of Indian
producers, the executives and the source said.
    Although Indian aluminium producers, which include Vedanta
Aluminium and Hindalco Industries  HALC.NS , could look to other
markets in Europe and Southeast Asia, these would take time to
absorb the additional supplies, they said.
    "India is one of the major exporters to the U.S. and the
tariffs will have a significant impact," B.K. Bhatia, additional
secretary general at the Federation of Indian Mineral
Industries, the country's leading mining body, told Reuters.
    "Some bilateral arrangement has to be made for concessional
tariffs to ease the situation," Bhatia said.
    Indian Prime Minister Narendra Modi is scheduled to meet
Trump this week, and is likely to propose additional tariff cuts
that could boost American exports to India and avoid a potential
trade war between the two countries.
    India, the world's second biggest primary aluminium
producer, exported 0.2 million metric tons of aluminium to the
U.S., worth 78.3 billion rupees ($894.4 million), in the year to
March 2024, government data showed.
    Unlike aluminium companies, India's steel producers are not
expected to face significant setbacks as their supplies to the
U.S. are smaller.
    India could see an increase in steel shipments as other
countries may divert cargoes to New Delhi due to the proposed
U.S. tariffs on the alloy, they said.
    The country became a net importer of steel in the 2023-24
fiscal year, and imports have steadily increased in recent
months.

 (Reporting by Neha Arora; Editing by Mayank Bhardwaj and Jan
Harvey)
 ((neha.dasgupta@tr.com;))