New Delhi– The engineering exports sector is urging government support to help navigate fresh trade challenges after the United States doubled tariffs on Indian goods, trade body EEPC India said on Wednesday.
The Trump administration has imposed an additional 25 per cent duty on shipments from India, effectively raising tariffs on most engineering goods to 50 per cent. The U.S. is India’s largest market for these products.
“This is a big jolt to the engineering exports sector for which the U.S. is the biggest market. While Indian exporters have been facing a fair amount of uncertainties ever since President Trump announced reciprocal tariffs on most of its trade partners, in India, we never thought that tariff would go as high as 50 per cent,” EEPC India Chairman Pankaj Chadha said.
He noted that hopes for an interim trade agreement between New Delhi and Washington have been dashed by the latest U.S. decision. “The 50 per cent tariff on engineering goods is set to make us uncompetitive in our top exports market. When the U.S. imposed a 25 per cent tariff earlier, we thought we would somehow manage and stay competitive vis-à-vis our close rivals, including China, but with the tariff now doubling, we are now in a very disadvantageous position,” Chadha added.
Despite the headwinds, India’s engineering exports to the U.S. rose 4.6 per cent to $1.74 billion in May compared to the same month last year. Exports to European markets, including Germany, the UK, and the Netherlands, also showed positive growth during the period.
Regionally, North America remained India’s top destination for engineering goods in April–May 2025, accounting for 21.3 per cent of total exports, followed by the European Union (17.7 per cent) and West Asia and North Africa (14.3 per cent). (Source: IANS)
