Tariff Tensions: India's Aluminium Industry Faces American Challenge

The Aluminium Association of India (AAI) is concerned over US President Trump's decision to double tariffs on aluminium imports, impacting Indian manufacturers already facing low-cost import pressures. This measure may damage the Indian aluminium industry which is crucial to sectors like aerospace and energy.

The Aluminium Association of India (AAI) has raised alarms over US President Donald Trump's recent move to increase tariffs on aluminium imports. This decision, which doubles the current rate to 50%, is poised to impact Indian manufacturers who are already under siege from a flood of inexpensive imports.

Announced on May 30 and set to take effect on June 4, the tariff hike aims to curb the influx of aluminium imports under Section 232 of the US Trade Expansion Act of 1962. Aluminium is vital for many Indian sectors, such as defense and telecommunications, and is facing threats from vast volumes of both primary aluminium and low-quality scrap imports.

The Aluminium Association has invested significantly in domestic production capacity, with hopes pinned on resolving these tensions through ongoing trade negotiations. The new tariffs threaten a market wherein India exported $860 million worth of aluminium to the US in 2024-25.