India’s small engineering exporters call for reduced import tariffs on U.S. goods due to impending 25% U.S. steel and aluminum tariffs. They cite potential significant revenue losses, urge government action on selective tariffs, and express concerns about domestic price hikes due to safeguard duties. Overall, India saw an 18% rise in engineering exports to the U.S. in January, indicating ongoing demand despite tariff challenges.
India’s small engineering goods exporters are urging their government to reduce import tariffs on some U.S. products. This request stems from fears surrounding the impact of U.S. President Donald Trump’s tariffs on steel and aluminum, set at 25% and effective from March 12. According to Pankaj Chadha, the chairman of the Engineering Export Promotion Council, such tariffs could affect approximately $7.5 billion of India’s $20 billion annual engineering exports.
The Engineering Export Promotion Council (EEPC) and other industry associations are advocating for tariff reductions on select U.S. goods that have low import volumes. The objective is to create a more favorable trade environment that may encourage the U.S. to negotiate better terms and proceed with a proposed bilateral trade agreement. Trump previously classified India as a high-tariff nation, threatening potential reciprocal tariffs.
Trade Minister Piyush Goyal is currently in the U.S. engaging in discussions aimed at negotiating tariff reductions. An example of potential tariff cuts would be reducing U.S. steel scrap import duties from 7.5% to nearly zero, along with potential reductions on various other items including nuts, castings, and certain agricultural goods.
Furthermore, exporters express concern that India’s plans for a safeguard duty of up to 14% on steel imports may further inflate domestic prices, affecting their profit margins. Nonetheless, Indian engineering exports to the U.S. have shown an increase, rising 18% to $1.62 billion year-on-year in January, which surpasses the sector’s overall growth.
Despite the challenges presented by U.S. tariffs, India’s global engineering exports are showing positive growth, reaching $9.42 billion in January, up from $8.77 billion a year earlier. Cumulative exports from April to January have increased 9.82% year-on-year, reflecting the need for continued support in export credit and technology for maintaining competitiveness.
India’s small exporters are in a precarious position due to the introduction of U.S. tariffs, urging the government for import duty reductions on selected goods. The strategy aims to balance trade terms and maintain export volumes in the face of increased costs and potential safeguard duties on imports. Continued government support is deemed essential for sustaining competitiveness in the engineering sector amidst these challenges.
Original Source: www.hindustantimes.com
