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India-US trade deal: $8.3B worth of Indian exports still face higher tariffs
Caution, not celebration, is warranted, says an analyst, noting there is still 50 per cent tariff on steel, aluminium, copper; while some auto components have 25 per cent levy
- PUBLISHED: Tue 3 Feb 2026, 4:30 PM
- By:
- Nithin Belle
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Nearly a tenth of India’s exports to the United States, worth about $8.3 billion (Dh30.47 billion), will still face higher tariffs of 25 per cent or more, despite the India-US trade deal coming into force, according to financial news platform, Moneycontrol.
While the trade deal will bring down reciprocal tariffs to 18 per cent, duties levied under Section 232 of the Trade Expansion Act of 1962 would remain untouched as they have for other trade agreements, said the report. These include a range of strategically sensitive products, including steel, aluminium, automobiles, timber, copper, and some machinery.
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Citing UN Comtrade (Commodity Trade Statistics Database), the report said India exported $8.3 billion worth of such goods to the US in 2024, accounting for 10.4 per cent of India’s total exports to the US, which added up to $80 billion.
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With shipments worth $3.9 billion under the national security lens, automobiles form the single largest block of exposure. Steel exports from India to the US added up to $2.5 billion, while aluminium shipments were nearly $800 million. These three categories account for over 85 per cent of India’s exports that remain at risk under Section 232 duties. Other exports include timber, copper and industrial vehicles.
The Aluminium Extrusion Manufacturers Association of India (ALEMAI) said on Tuesday that the trade deal would benefit only some sectors. Aluminium, iron and steel product exports will face higher 50 per cent duty in America.
The Global Trade Research Initiative (GTRI) has also urged caution on the deal. Ajay Srivastava, founder of GTRI, said on social media that “caution, not celebration, is warranted.” According to him, section 232 duties of 50 per cent on steel, aluminium, copper and similar products will continue, as well as a 25 per cent tariff on select auto components.
Reacting to US President Donald Trump’s claims that India will purchase over $500 billion worth of American goods, the GTRI founder said India’s current imports of merchandise and energy from the US are below $50 billion. “Reaching $500 billion would likely require more than 20 years, suggesting the figure refers to a long-term aspiration rather than a near-term commitment,” he added
