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India's Engineering Exports Face US Tariffs

March 06, 2025
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India's small engineering goods exporters are urging the government to cut import tariffs on certain US goods to achieve more favorable trade terms. This comes as President Donald Trump prepares to implement new steel and aluminum duties, effective March 12. The 25% US tariffs on steel and aluminum imports have raised concerns among Indian exporters about declining orders and rising costs, with nearly $7.5 billion worth of shipments potentially affected. The Engineering Export Promotion Council (EEPC) and other industry chambers have suggested cutting tariffs on select US goods with low inbound shipments. This could prompt the Trump administration to offer favorable terms and move forward with a proposed bilateral trade deal. India's trade minister, Piyush Goyal, is currently in the US for trade talks, aiming to negotiate potential tariff cuts and assess the impact of Trump's planned reciprocal tariffs. India's exports of engineering goods to the US jumped 18% year-on-year in January to $1.62 billion, driven by an increase in shipments of aircraft parts, electrical machinery, and automobiles. The EEPC has emphasized the need for continued government support in export credit and technology to maintain competitiveness in the face of these new tariffs. With India's global engineering exports accounting for a quarter of total merchandise exports, the industry is bracing for the potential impact of these US tariffs.
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