India's Engineers Brace for U.S. Tariff Turmoil

India's engineering exports are at risk due to a looming 50% tariff on foreign steel and aluminum announced by the U.S. This could impact a significant portion of the $5 billion worth of engineering goods India ships to the U.S., sparking concerns over increased costs and competition.

The Engineering Export Promotion Council of India (EEPC) warns that U.S. President Donald Trump's newly announced 50% tariff on imported steel and aluminum could pose significant challenges for India's engineering exports.

Set to take effect on June 4, 2025, this tariff could impact around a quarter of India's engineering goods exports to the U.S., currently valued at approximately USD 5 billion annually. In past scenarios, even a 25% tariff created difficulties for Indian exporters in the global market.

Pankaj Chadha, EEPC Chairman, expressed concerns over potential shipment declines due to increased costs. While the UK secured tariff exemptions through negotiations, India is yet to achieve similar waivers, complicating ongoing bilateral trade discussions with the U.S.

(With inputs from agencies.)