The ongoing debate about the impact of the Trump administration's tariff increase from 10 per cent to 25 per cent on India's aluminium exports is generating considerable discussion. While various industry leaders offer different viewpoints, it is essential to understand India's current aluminium export relations with the United States. According to the data revealed by the Ministry of Commerce and Industry, India's aluminium exports to the US were valued at US$946 million during 2023-24, following USD 1,097 million worth of exports in 2022-23.
Image source: Vedanta
Official trade data suggests India's aluminium export value to the US exceeded USD 1 billion for two consecutive years. In 2021-22, the value reached USD 1.1 billion, marking a sharp rise of 117.5 per cent Y-o-Y, compared to USD 507.34 million in 2020-21. As the observation goes, India's aluminium export value rose each year from just USD 350 million in 2016-17, when Trump began his first term of Presidentship.
Now, that brings us to the key question: How did India's aluminium export to the United States grow in value after 2016-17, when Donald Trump was the President and already levied a 10 per cent duty on Indian aluminium imports? The above data clearly suggests that the 10 per cent tariff was not enough to block aluminium imports from India, the world's second-largest aluminium producer after China.
If tariffs did not work then, will they be effective now?
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