India’s Small Exporters Urge Tariff Reductions Amid U.S. Steel and Aluminum Duties

India’s small exporters are seeking reductions in import tariffs on certain U.S. products to offset the impact of a 25% steel and aluminum tariff from the U.S. Effective March 12, this measure has alarmed exporters, impacting $7.5 billion of India’s $20 billion engineering goods exports. The EEPC has requested tariff cuts to improve trade negotiations with the U.S. amid fears that domestic prices may rise as a result of local protective duties.

India’s small engineering goods exporters are advocating for reduced import tariffs on certain U.S. products to mitigate the impact of stringent steel and aluminum tariffs imposed by the United States. The 25% tariffs, effective March 12, have caused considerable concern among Indian exporters regarding potential decreases in orders and increases in their operating costs. Pankaj Chadha, chairman of the Engineering Export Promotion Council, noted that approximately $7.5 billion of India’s $20 billion in annual engineering exports could be affected by these tariffs.

The Engineering Export Promotion Council (EEPC) and various industry chambers have requested the Indian government to lower tariffs on selected U.S. goods that currently have minimal inbound shipments. Such reductions could stimulate a more favorable negotiation environment for a potential bilateral trade deal with the Trump administration, which has criticized India for its high tariff rates and threatened “reciprocal tariffs” starting in early April.

As part of the trade negotiations, India’s trade minister, Piyush Goyal, is currently in the United States seeking tariff reductions. Proposals may include slashing the import duty on U.S. steel scrap from 7.5% to nearly zero, as well as reducing tariffs on numerous manufacturing components and agricultural goods. Exporters have expressed concern over India’s planned safeguard duty of up to 14% on steel imports, claiming it could exacerbate domestic prices and strain their profit margins.

January saw an 18% increase in engineering goods exports to the U.S., totaling $1.62 billion. This growth outperformed the sector’s general growth rate of 7.44%. Engineering exports for the fiscal year, from April 2024 to January 2025, increased by 9% to $15.6 billion, propelled by higher shipments in various industrial sectors.

Chadha emphasized that the engineering sector faces considerable challenges due to these tariffs, advising that sustained government assistance in areas like export credit and technology development is vital for maintaining competitiveness. Additionally, India’s overall engineering exports increased to $9.42 billion in January, reflecting a year-on-year growth from $8.77 billion, although this figure is a decline from December’s $10.84 billion. Cumulatively, exports for the April-January period rose by 9.82% compared to the previous year, reaching $96.75 billion, according to EEPC data.

In summary, India’s small engineering exporters are calling for decreased import tariffs on certain U.S. goods to counteract the effects of newly imposed tariffs on steel and aluminum. By doing so, they hope to foster better trade relations and mitigate the challenges posed by increased costs and declining orders. The Indian government’s response, including potential tariff adjustments, will be pivotal in addressing these concerns and supporting the competitiveness of the engineering sector.

Original Source: www.hindustantimes.com

About Liam Nguyen

Liam Nguyen is an insightful tech journalist with over ten years of experience exploring the intersection of technology and society. A graduate of MIT, Liam's articles offer critical perspectives on innovation and its implications for everyday life. He has contributed to leading tech magazines and online platforms, making him a respected name in the industry.

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