India's Engineering Exports At Risk As US Proposes Tariff On Steel, Aluminium: EEPC

(MENAFN- KNN India) New Delhi, Jun 3 (KNN) India's engineering goods exports face potential disruption following US President Donald Trump's proposal to impose a 50 percent tariff on steel and aluminium imports.

The Engineering Export Promotion Council of India has warned that such measures could significantly impact the country's shipments to the United States.

Steel, aluminium, and their derivatives represent approximately 25 percent of India's total engineering exports to the US market.

Current annual exports of these materials and related products amount to roughly USD 5 billion, according to industry data.

The proposed tariff increase comes amid existing trade pressures. The United States implemented a 25 percent tariff on steel imports on March 18, 2025, which has already created challenging market conditions for Indian exporters.

While India's direct steel exports to the US remain relatively modest, the tariffs have increased global competition and altered established trade patterns.

Pankaj Chadha, Chairman, Engineering Export Promotion Council of India, stated that implementing the proposed 50 percent tariff would make exports of steel, aluminium, and derivative products costlier, potentially resulting in reduced shipment volumes.

The trade organisation has pointed to recent developments involving other countries as a potential model for resolution. The United Kingdom recently obtained an exemption from the 25 percent steel and aluminium tariffs through a bilateral trade agreement with the United States.

Chadha suggested that India should pursue a similar exemption during ongoing Bilateral Trade Agreement negotiations between the two countries.

He expressed concern that implementing unilateral tariff increases during active trade discussions could complicate diplomatic efforts and potentially affect engineering exports valued at approximately USD 5 billion annually.

(KNN Bureau)

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