New Delhi, June 2 , 2025 : India’s engineering exports are likely to face headwinds on the imposition of a 50 per cent tariff on all foreign steel and aluminium by US President Donald Trump, Engineering Export Promotion Council of India (EEPC) said in a release on Monday.
President Trump announced a 50 per cent duty on imports to the US for steel and aluminium from June 4, 2025.
Both steel and aluminium and their derivatives account for nearly a quarter of the country’s total engineering goods shipments to the US, EEPC said in a release. “The annual export of steel, aluminium and their derivatives to the US currently stands at around USD 5 billion,” it further added.
“In case the US goes ahead with its plan and imposes a 50 per cent tariff on steel, aluminium and their derivatives, exports of these key items will become costlier, leading to a likely dip in shipments,” said Pankaj Chadha, Chairman, EEPC India.
Trump tariff had resulted in shift in trade flows. However, from India’s perspective, India’s direct steel exports to the US are relatively low, the tariffs have led to increased global competition and price pressures.
Recently, the UK through its trade deal with the US recently got exemptions from 25 per cent tariff on steel and aluminium and EEPC further suggests that India should for the same kind of waiver during the ongoing bilateral trade agreement (BTA) negotiations with the US.
