Indian engineering exports to US to fall by $4-5 b due to Trump tariffs: EEPC
Engineering Exports Promotion Council head says competition in Latin America, Central America, Middle East, Africa set to heat up as exporters seek new markets
India’s engineering exports to the US may see a drop of $4-5 billion due to additional duties imposed on iron and steel and auto components, the Engineering Exports Promotion Council (EEPC) said on Wednesday.
EEPC India chairman Pankaj Chadha said engineering exports in 2024-25 had hit an all-time high of $116.67 billion, a significant increase from $109.3 billion recorded in 2023-24.
"The additional duties imposed by the US on iron and steel and auto components are set to hit the engineering exports sector,” Chadha said in a statement. “There could be a potential drop of $4-5 billion in engineering shipments to the US as a consequence of it.”
US President Donald Trump imposed stiff tariffs on nearly 60 nations earlier this month. His administration subsequently paused tariffs on all nations but China, for three months.
China, other markets
Also, competition from China in other markets will be severe as it will try to push its products there with a view to de-risk the US market, he said.
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The Council said competition in markets like Latin America, Central America, the Middle East and Africa was set to heat up as exporters seek new markets. "This could dent the profit margins. Support from the government is needed in terms of fiscal incentives and help in market access," the council said.
EEPC said that global trade and economic scenario remained volatile and uncertain, and that the world was facing massive disruption.
In March last fiscal, the value of engineering goods exports declined nearly 4 per cent year-on-year to $10.82 billion, compared to $11.27 billion in the similar month the previous period.