India’s small engineering exporters are advocating for tariff reductions on U.S. imports to counteract the impact of 25% U.S. tariffs on steel and aluminium that came into effect on March 12. With approximately $7.5 billion at risk, industry leaders are urging the government to negotiate favorable trade terms and alleviate some import duties to boost competitiveness. Trade Minister Piyush Goyal is currently discussing these issues in the U.S.
India’s small engineering exporters are advocating for reduced import duties on certain American goods. As U.S. tariffs of 25% on steel and aluminium take effect on March 12, exporters are concerned about increased costs and potential reductions in orders. Pankaj Chadha, chairman of the Engineering Export Promotion Council, has stated that approximately $7.5 billion of India’s $20 billion annual engineering goods exports could be adversely affected.
In light of these tariffs, the Engineering Export Promotion Council (EEPC) and other industry bodies are urging the Indian government to consider tariff cuts on selected U.S. products that are currently facing low import volumes. They anticipate that such amendments may affect the U.S. administration positively, possibly leading to favorable trade negotiations and a bilateral trade deal. Recent commentary from President Trump has characterized India as a high-tariff nation, with indications of potential reciprocal tariffs to follow.
Indian Trade Minister Piyush Goyal is currently engaged in negotiations in the U.S., focusing on achieving possible tariff reductions that would benefit both countries. Suggestions from the EEPC include reducing duties on U.S. steel scrap from 7.5% to zero, as well as lowering tariffs on other products such as nuts, castings, and forgings. These measures, alongside concessions on certain agricultural and manufacturing items, are deemed necessary for sustaining competitiveness.
Moreover, exporters express concerns regarding new safeguard duties of up to 14% on steel imports, which could inflate domestic prices and diminish profit margins. Despite these challenges, Indian engineering exports to the U.S. saw an 18% rise year-on-year in January, amounting to $1.62 billion, exceeding the overall sector growth rate of 7.44%.
Notably, cumulative engineering exports from April 2024 to January 2025 reached $15.6 billion, surging 9% year-on-year, fueled by stronger sales in aircraft parts and machinery. Overall, Indian engineering goods exports increased to $9.42 billion in January 2025, reflecting a growth compared to $8.77 billion a year earlier, though slightly lower than December’s figures. Continuous government backing in export credit and technology support is essential for the engineering sector’s ongoing competitiveness amidst these pressures.
Indian small exporters in the engineering sector are actively seeking reduced import duties on U.S. goods to mitigate the impact of newly imposed U.S. tariffs on steel and aluminium. This strategic push, coupled with ongoing trade negotiations, aims to safeguard the interests of approximately $7.5 billion worth of exports, while ensuring competitiveness in the global market. Boosting support mechanisms from the government is deemed crucial in navigating these evolving trade dynamics.
Original Source: www.hindustantimes.com
