NEW DELHI, June 3 – India’s engineering goods exports worth nearly $5 billion are likely to face headwinds if U.S. President Donald Trump goes ahead with a proposed 50% tariff on steel, aluminium and related products, industry body EEPC India said on Tuesday.
The proposed tariff, which would double the current 25% duties imposed in March 2025, could make Indian shipments significantly more expensive and less competitive in the U.S. market, the Engineering Export Promotion Council (EEPC) warned.
Steel, aluminium and their derivatives account for almost a quarter of India’s engineering exports to the United States, which total about $5 billion annually, the council said.
“In case the U.S. goes ahead with its plan and imposes a 50% tariff on steel, aluminium and their derivatives, exports of these key items will become costlier, leading to a likely dip in shipments,” said EEPC India Chairman Pankaj Chadha in a statement.
While India’s direct steel exports to the U.S. remain relatively low, the tariffs have contributed to a shift in global trade flows and increased price pressures in key markets, Chadha said.
He also pointed out that the United Kingdom recently secured exemptions from existing tariffs through a trade deal with Washington, and urged New Delhi to push for a similar waiver as part of the ongoing bilateral trade agreement (BTA) talks with the United States.
“This is perhaps not the opportune time to introduce such unilateral tariffs, especially when BTA negotiations are going on. It can make the work of the negotiators tricky,” Chadha added. The Indian government has not yet commented on the potential tariff hike or whether a waiver will be pursued.
