US-India Trade Deal: No Relief for Aluminium Industry

New Delhi, Feb 3 (PTI) Aluminium extrusion manufacturers' body ALEMAI on Tuesday said that the India-US trade deal is expected to benefit only certain sectors, while aluminium, iron and steel product exports will keep on facing higher 50 per cent duty in the American market.

India and the US have agreed to a trade deal under which Washington will bring down reciprocal tariffs on Indian goods to 18 per cent from current 25 per cent, US President Donald Trump said on Monday after a phone conversation with Prime Minister Narendra Modi.

Exporters and experts are now waiting for the USA's executive order to get a clearer picture of the deal.

Since August last year, Indian exports have been facing steep 50 per cent tariffs in the US market.

Also, through a separate ruling under Section 232, the US administration increased tariffs on steel, aluminium products from 25 per cent to 50 per cent effecting June 2025.

According to the Aluminium Extrusion Manufacturers Association of India (ALEMAI), while the broader deal provides relief to other industries, it does not currently remove the high-duty burden on these core metal industries.



"...reducing reciprocal tariffs to 18 per cent mainly benefits specific sectors like textiles and electronics, but iron, steel, and aluminium are generally expected to continue facing high US Section 232 duties of 50 per cent," said ALEMAI President Jitendra Chopra.

"Finalisation of the trade deal between USA and India is very good news. The uncertainty and confusion that had been prevailing for quite some time will be cleared. This will remove the distraction from the trade and industry world and India's development journey will gain more speed... We congratulate @pmoindia Shri @narendramodi ji for his acumen, foreign trade policy, patience, decisiveness and wise policies," Chopra said in a social media post.

The Aluminium extrusion industry comprises enterprises engaged in the manufacturing of products using aluminium alloys.

The agreement on a trade deal comes at a time when several labour-intensive sectors like textiles, apparel, leather and marine were facing challenges due to high tariffs.

India's merchandise exports to the US declined 1.83 per cent to USD 6.88 billion in December 2025 due to high tariffs imposed by America, according to the commerce ministry data.

Exports also contracted in September and October last year. However, it rose 22.61 per cent in November.

During the April-December period of this fiscal year, the country's exports to the US increased 9.75 per cent to USD 65.87 billion, while imports rose 12.85 per cent to USD 39.43 billion.