The U.S. administration’s decision to double tariffs on steel and aluminum imports to 50 per cent is poised to significantly impact India’s engineering exports, valued at approximately $5 billion annually. The Engineering Export Promotion Council (EEPC) of India has expressed deep concern over this development, emphasizing that steel, aluminum, and their derivatives constitute nearly a quarter of India’s engineering goods exports to the U.S.
EEPC Chairman Pankaj Chadha highlighted that the existing 25 per cent tariff, imposed in March 2025, had already strained Indian exporters. The proposed hike is expected to exacerbate these challenges, making Indian products less competitive in the U.S. market. Chadha noted, “If the U.S. implements the 50 per cent tariff on steel, aluminum, and their derivatives, exports of these critical items will become more expensive, likely leading to a decline in shipments.”
In light of the United Kingdom securing an exemption from similar tariffs through a bilateral trade agreement, EEPC has urged the Indian government to seek a comparable waiver during ongoing Bilateral Trade Agreement (BTA) negotiations with the U.S.
While India’s direct steel exports to the U.S. remain limited, the increased tariffs could intensify global competition and disrupt trade flows, indirectly affecting Indian exporters.
Commerce and Industry Minister Piyush Goyal has affirmed India’s commitment to resolving trade-related issues with the U.S. through bilateral discussions, emphasizing continued cooperation between the two nations.
As the new tariffs are set to take effect on June 4, Indian exporters and policymakers are closely monitoring the situation, with hopes that diplomatic engagements will mitigate potential adverse impacts on the country’s engineering export sector.
