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Trump’s proposed 50% tariff hike likely to hit $5 billion engineering exports: EEPC India
Jun-03-2025

The Engineering Export Promotion Council of India (EEPC India) has said that US President Donald Trump’s proposed 50 per cent tariff on steel and aluminium imports could severely impact India’s engineering goods’ shipments. These metals and their derivatives constitute nearly a quarter of the country’s total engineering shipments to the US. Currently, India exports around $5 billion worth of steel, aluminium and related products to the US annually. 

It stated the existing 25 per cent tariff on steel imports, imposed by the US on March 18, 2025, has already created a tough market for Indian exporters. While India’s direct steel exports to the US remain limited, the tariffs have intensified global competition and disrupted trade flows. Chairman of EEPC India, Pankaj Chadha, said ‘If the US implements the 50 per cent tariff on steel, aluminium and their derivatives, exports of these critical items will become more expensive, likely leading to a decline in shipments.’ 

He pointed out that the UK recently secured an exemption from the 25 per cent steel and aluminium tariffs through a trade deal with the US, and suggested that India should seek a similar waiver during the ongoing Bilateral Trade Agreement (BTA) negotiations. He stated ‘This may not be the right time for such unilateral tariffs, especially when BTA talks are underway. It could complicate negotiations. The proposed hike could jeopardise engineering exports worth around $5 billion.’ 


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