Aluminium left out of India’s US and EU trade deals-but the industry may still benefit and here’s how

In a span of just one week, India has signed two major international trade agreements – one with the European Union and another with the United States.  Together, these much-awaited deals are projected to add nearly USD 150 billion to India’s exports over the next one decade and ease several longstanding trade frictions. While all this is great, aluminium being conspicuously absent from both the agreements send through some disappointment at a first glance. But later on, a closer analysis suggests that India’s aluminium industry may not be materially disadvantaged and could even benefit indirectly through downstream demand.

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 Aluminium kept outside – what it means?

While the India-EU trade deal has secured tariff elimination or reduction on over 96 per cent of exports on both sides, the India-US agreement has obtained the Trump administration’s consent to significantly cut import duties on labour-intensive goods such as textiles, leather, toys, furniture, and jewellery. These products, which currently face duties of up to 50 per cent, will see tariffs reduced to around 18 per cent, with almost an immediate effect. However, notably, there is no mention of aluminium in either of the deal. Instead, the EU’s Carbon Border Adjustment Mechanism (CBAM) remains intact. The message is clear that none of the countries between the United States and the European Union are willing to move from their original stances.

Also read: US aluminium midwest premium in Jan’26 exceeds the $2k mark, hitting an all-time high

To reiterate, while the US continues aiming to strengthen its domestic aluminium industry by imposing steep tariffs under Section 232, the European Union sticks to its strategy to push a low-carbon aluminium ecosystem by pricing embedded emissions. As a result, India will continue to face duties on aluminium exports—particularly high-emissions aluminium in the case of the EU.

Assessing the impact on India’s aluminium industry - through the lens of the India-US trade deal first