Latest Sectors News

The US's increased 50% tariff on iron and steel products threatens India's engineering exports, potentially impacting $20 billion worth of goods. Exporters are urging the Indian government to seek an exemption to protect outbound shipments and jobs, especially within MSMEs and large firms involved in global value chains. View More

New Delhi: The higher 50 per cent US tariff on iron and steel products poses a threat to India's engineering exports , exporters said, urging the government to seek an exemption to safeguard outbound shipments and jobs in the sector. With effect from June 4, the US has raised import duty on derivatives, products, and components made from steel and aluminium from 25 per cent to 50 per cent. This poses a serious threat to India's engineering export sector, a Ludhiana-based exporter said. This sector should be part of the proposed bilateral trade agreement being negotiated between India and the US, he added. The high tariffs on finished engineering goods , which are not practically manufacturable in the US due to labour and environmental constraints, have led to higher costs for American industries and consumers, another exporter said. Live Events These components are vital for US sectors like automotive, construction, and infrastructure, where Indian companies have invested significant capacity to serve long-term demand. Engineering goods contribute nearly 27 per cent of India's total merchandise exports (over USD 112 billion in 2023-24), with the US accounting for 15-18 per cent. A large share of these exports (about USD 20 billion) will be directly hit by the increased duties, they added. "Many Indian engineering firms are key players in Global Value Chains (GVCs) for multinational corporations. This tariff hike risks order losses, plant closures, and job cuts across over 25,000 MSMEs and large firms in India," they said. Active trade talks between India and the US are underway to address reciprocal tariffs and proactive intervention to get exemption on engineering goods is crucial to protect exports, jobs, and supply chain stability, they added. (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)