India’s Engineering Exports to US at Risk Due to Latest 50% Trump Tariff on Steel & Aluminum, Says EEPC

Mumbai, June 2, 2025: The Engineering Export Promotion Council (EEPC) of India has sounded an alarm over a proposed increase in US tariffs on steel and aluminium imports to 50%, stating that the move could endanger nearly USD 5 billion worth of Indian engineering exports annually.

Engineering Sector Faces Major Risk

According to EEPC, steel, aluminium, and their derivatives constitute nearly 25% of India’s engineering goods exports to the US. A significant rise in tariffs could severely affect India’s export competitiveness and reduce shipment volumes in this crucial segment.

At present, India exports close to USD 5 billion worth of these commodities to the United States each year, underscoring the potential scale of impact.

Existing Tariffs Already Creating Pressure

The US had already introduced a 25% tariff on steel imports on March 18, 2025. Although India’s direct steel shipments to the US are modest, the current tariff regime has intensified global competition and altered trade flows, according to EEPC.

“If the US implements the 50% tariff on steel, aluminium, and related products, Indian exports will become significantly costlier, likely leading to a notable drop in shipments,” said EEPC India Chairman Pankaj Chadha.

Need for Diplomatic and Strategic Engagement

Citing the UK’s recent exemption from the 25% steel tariff through a bilateral trade agreement, Chadha urged the Indian government to seek similar relief through the ongoing Bilateral Trade Agreement (BTA) discussions with the US.

“This is not the appropriate time for such unilateral tariff hikes, especially amid BTA negotiations. It risks derailing progress and could harm engineering exports worth around USD 5 billion,” Chadha stated.

As India aims to deepen its trade partnership with the US, the EEPC has stressed the importance of timely diplomatic engagement to protect key sectors. The council’s warning underscores the need for proactive strategy to minimise the fallout of potential policy changes on India’s engineering export landscape.

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