Indian small exporters are requesting duty cuts on certain U.S. imports to mitigate the impact of the upcoming 25% tariffs on steel and aluminum. Approximately $7.5 billion of engineering exports could be affected. The EEPC and other bodies urge these cuts to support trade negotiations, as India’s exports to the U.S. have increased despite tariff concerns.
In light of the impending implementation of U.S. tariffs on steel and aluminum, India’s small exporters have urgently requested the government to reduce import duties on certain U.S. goods. Pankaj Chadha, chairman of the Engineering Export Promotion Council, expressed concerns that approximately $7.5 billion of India’s $20 billion annual engineering goods exports might be adversely affected, given the 25% U.S. tariffs set to take effect on March 12.
The Engineering Export Promotion Council (EEPC) and various industry representatives are advocating for tariff reductions on specific American goods that currently experience low imports. They believe that such measures could entice the Trump administration to engage positively in trade negotiations and potentially facilitate a bilateral trade agreement.
India’s Trade Minister, Piyush Goyal, is currently in the U.S. to discuss these tariff issues, aiming to negotiate beneficial terms while addressing the anticipated reciprocal tariffs threatened by the U.S. administration. Possible tariff cuts being discussed include reducing the import duty on U.S. steel scrap from 7.5% to nearly zero.
The planned safeguard duty of up to 14% on steel imports to protect domestic manufacturers from cheaper Chinese imports could further exacerbate challenges for Indian exporters. Despite facing these tariffs, India’s exports of engineering goods to the U.S. saw significant growth, with an 18% increase in January alone.
The overall engineering exports from India represent about one-fourth of the nation’s total merchandise exports, with recent data showing a cumulative rise to $96.75 billion from April to January, reflecting a 9.82% increase year on year. Chadha emphasized the necessity for government support in export credit and technological advancement to bolster competitiveness in these trying times.
The imminent U.S. tariffs on steel and aluminum have prompted Indian exporters to call for reduced import duties on U.S. goods, highlighting potential impacts on their business. Trade discussions led by India’s minister aim to negotiate favorable conditions while addressing concerns about reciprocal tariffs. Continued government assistance will be pivotal for Indian exporters to maintain competitiveness and navigate this challenging landscape.
Original Source: www.hindustantimes.com
