India-US Trade Deal: A Mixed Metal Economy Outcome

India and the US have agreed on a trade deal reducing tariffs on textiles and electronics. Despite this, sectors like aluminium, iron, and steel continue to face high duties. ALEMAI notes that while the deal is good news overall, core metal industries still encounter significant challenges in the US market.

The Aluminium Extrusion Manufacturers Association of India (ALEMAI) has expressed mixed feelings about the recent US-India trade deal. The agreement will see a reduction in tariffs on Indian goods, beneficial for certain industries, while aluminium, iron, and steel exports face high duties, maintaining a 50 percent rate in the US market.

Announced after a conversation between US President Donald Trump and Prime Minister Narendra Modi, the deal will see reciprocal tariffs fall from 25 to 18 percent. However, under the Section 232 ruling, duties on metal products will remain high, leaving aluminium exporters particularly affected.

While some sectors like textiles and electronics stand to benefit, ALEMAI President Jitendra Chopra expresses concern over the continued burden on India's core metal industries. Meanwhile, India's exports to the US showed varied trends, with some growth over the fiscal year despite the presence of tariffs.

(With inputs from agencies.)