Aluminium exports to US may drop due to 25% tariff

India’s aluminium shipments to the United States are likely to drop due to tariffs proposed by the Trump administration. According to sources, this will prompt producers to look at other markets such as Europe and China.

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According to Sehul Bhatt, Director- Research, Crisil Intelligence, the US move to impose a flat 25 per cent tariff on aluminium imports from March 12, compared with a raft of lower levies now, will have a negative impact on Indian manufacturers of the metal.

“Nearly half of India’s primary production is currently exported, of which around 6 per cent goes to the US. With users of primary aluminium in that country expected to reduce imports after the 25 per cent tariff kicks in, end users there would prefer locally sourced secondary aluminium, or scrap. This, too, will have a bearing on India because around 26 per cent of the aluminium scrap we import comes from the US. Consequently, we foresee some impact on secondary aluminium and alloys producers as well,” Bhatt said.

On February 11, 2025, the US revised the tariff rates applicable on aluminium imports to 25 per cent from 10 per cent and withdrew all country-specific duty exemptions previously granted.