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Key Points

The US has doubled tariffs on Indian engineering goods to 50%, which the EEPC India calls a major blow to the sector. Chairman Pankaj Chadha stated this makes Indian exports highly uncompetitive in their largest market. Despite the tariffs, exports to the US actually saw a 4.6% growth in May. The industry is now looking to the Indian government for support to manage these new trade challenges.

Key Points: EEPC India Seeks Govt Help as US Doubles Tariffs on Engineering Exports

  • US imposes 50% tariff on Indian engineering goods making them uncompetitive
  • EEPC India seeks government help to navigate new trade challenges
  • North America remains top destination with 21.3% export share
  • Engineering exports to US still grew 4.6% to $1.74B in May
2 min read

Engineering exports sector looking at govt to help navigate US tariffs: EEPC India 

EEPC India Chairman calls 50% US tariffs a "big jolt," making Indian engineering goods uncompetitive in their top market and seeks government intervention.

"This is a big jolt to the engineering exports sector for which the US is the biggest market. - EEPC India Chairman Pankaj Chadha"

New Delhi, Aug 27

Trade and investment promotion organisation EEPC India on Wednesday said that while the engineering exports sector continues to explore new markets and diverse product portfolios, it is looking at the government to help it navigate the new set of challenges arising due to additional US tariffs.

The Donald Trump administration has notified the additional 25 per cent tariff on US-bound shipments from India, doubling the tariff for most goods being exported from the country.

“This is a big jolt to the engineering exports sector for which the US 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.

It was hoped that an interim trade deal would be signed by India and the US sooner than later. But the recent developments on the trade front on the part of the US have been disappointing and disturbing, he added.

"The 50 per cent tariff on engineering goods is set to make us uncompetitive in our top exports market. When the US imposed a 25 per cent tariff on Indian goods earlier, we thought we would somehow manage and stay competitive vis-a-vis our close rivals, including China, but with the tariff now doubling, we are now in a very disadvantageous position," Chadha said in a statement.

Meanwhile, India's engineering goods exports to the US registered a 4.6 per cent increase to $1.74 billion in May this year, compared to the same month of the previous year.

Similarly, the exports of engineering goods to European countries such as Germany, the UK, and the Netherlands also showed positive growth in May this year.

Region-wise, North America maintained its spot as the number one export destination with a share of 21.3 per cent, followed by the EU (17.7 per cent) and WANA (West Asia and North Africa) (14.3 per cent) in April-May 2025.

- IANS

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Reader Comments

P
Priya S
We need to diversify our export markets more aggressively. The positive growth in European markets shows there are opportunities beyond the US. Government should focus on helping exporters tap into new regions.
A
Arjun K
While I understand the challenges, our exporters have shown resilience before. The 4.6% growth in May despite earlier tariffs is impressive. Maybe we're more competitive than we think? 💪
S
Sarah B
The government needs to act fast on this. Trade negotiations shouldn't drag on while our industries suffer. Quick diplomatic intervention is needed to protect Indian jobs and exports.
V
Vikram M
This is why we need to strengthen domestic manufacturing and consumption. Over-reliance on any single export market makes us vulnerable. Make in India for India should be the priority.
M
Michael C
While the government should help, exporters also need to innovate and improve efficiency. The global market is competitive, and we need to offer superior quality and value to withstand such challenges.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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