April 22, 2025 — Indian exports of engineering goods may take a serious blow following the U.S. decision to impose additional tariffs on key product categories, according to a warning issued by the Engineering Export Promotion Council (EEPC) of India on Tuesday.
The EEPC estimates that the new duties could lead to a potential annual loss of $5 billion in Indian exports of iron, steel, and automobile components to the U.S. market.
“The additional duties imposed by the U.S. on iron and steel and auto components are set to hit the engineering exports sector,” said EEPC Chairman Pankaj Chadha in the statement. “There could be a potential drop of $5 billion in engineering shipments to the U.S. as a consequence.”
Despite the projected decline, Indian engineering exports hit an all-time high of $116.67 billion in 2024–25, a notable rise from $109.3 billion in 2023–24, as per official trade data.
Adding to the concern, Chadha pointed out that Chinese exporters are likely to intensify efforts in other international markets, such as Latin America, Central America, the Middle East, and Africa, in a bid to de-risk their exposure to the U.S. This heightened competition could compress margins for Indian exporters already grappling with U.S. trade barriers.
The EEPC has called for greater government support, including fiscal incentives and assistance in accessing new markets, to help Indian exporters mitigate the impact.
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