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

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.

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