10 countries including India, most affected by Trumpā€™s steel and aluminium tariffs

US President Donald Trump has announced a new 25% tariff on all steel and aluminium imports, a move that is set to shake up global trade. The tariffs are expected to impact some of the largest exporters of these metals to the United States, causing potential economic disruptions.

According to The Financial Times, the following 10 countries were the top suppliers of steel and aluminium to the US in 2023, and they are likely to be hit hardest by these tariffs. Hereā€™s how each country might be affected ā€“ and why India, ranked No. 8, has much at stake.

1. Canada ā€“ $25.26 billion

As the largest exporter of steel and aluminium to the US, Canada stands to suffer the most from the tariffs. Given the strong trade relationship between the two countries, Canadian industries and policymakers are expected to push back against these measures, possibly seeking exemptions or retaliatory actions.

2. China ā€“ $13.86 billion

Despite ongoing trade tensions, China remains one of the biggest suppliers of steel and aluminium to the US The new tariffs will only add to the strain between the two economic giants, potentially accelerating China's efforts to diversify its export markets.

3. Mexico ā€“ $13.28 billion

As a key trade partner under the USMCA (United States-Mexico-Canada Agreement), Mexicoā€™s steel and aluminium industries are deeply integrated with the US supply chain. Higher tariffs could disrupt manufacturing and increase production costs for companies operating in both countries.

4. South Korea ā€“ $5.71 billion

South Korea, a major supplier of high-quality steel used in auto manufacturing, could face serious challenges if the tariffs increase production costs. With companies like Hyundai and Kia relying on exports to the US, the tariffs could force price hikes or production shifts.

5. Brazil ā€“ $4.87 billion

Brazilā€™s steel exports to the US are critical to its economy, and the tariffs could have a ripple effect on its mining and manufacturing sectors. As one of the worldā€™s largest iron ore producers, Brazil might seek new trade alliances to compensate for losses.

6. Germany ā€“ $4.49 billion

Germany, home to some of the worldā€™s most advanced steel manufacturers, is likely to be hit hard. With its auto and engineering industries dependent on exports to the US, the tariffs could slow industrial growth and increase costs for German firms.

7. Taiwan ā€“ $4.38 billion

Taiwan, a major supplier of specialty steel and aluminium components, could see significant disruption in trade flows. The islandā€™s manufacturers might have to look for alternative export markets or absorb increased costs.

8. India ā€“ $4 billion

India ranks eighth among the top exporters of steel and aluminium to the US, meaning it wonā€™t be spared from the impact of these tariffs. With Indiaā€™s steel industry already facing global competition, higher US tariffs could lead to:

A slowdown in exports to one of its key markets.

Increased production costs for Indian manufacturers reliant on US imports.

More trade diversification efforts, with India possibly increasing exports to Europe and Southeast Asia. However, India might also benefit if US buyers look for alternative suppliers outside of China and Canada.

9. Japan ā€“ $3.22 billion

Japan's high-tech steel and aluminium products are essential for industries like automotive and electronics. Higher tariffs could make Japanese goods more expensive in the US market, potentially reducing demand and hurting exports.

10. Italy ā€“ $2.73 billion

As one of Europeā€™s leading steel exporters, Italyā€™s economy could take a hit if higher tariffs reduce US demand. The European Union may also retaliate with countermeasures, further straining US-EU trade relations.

What's next?

With Trumpā€™s 25% tariff announcement, these 10 countries are bracing for economic consequences. While some nations may negotiate exemptions or retaliate with countermeasures, others, like India, may focus on trade diversification and new export strategies.

As global trade shifts, the steel and aluminium industry will likely undergo major realignments, impacting manufacturers, consumers, and international trade policies in the coming months.