US Tariff Surge Threatens India's Engineering Export Sector
India's engineering exports face challenges as the US raises tariffs on steel and aluminium products to 50%. Exporters urge government intervention for exemptions to protect exports and jobs. The engineering sector, crucial for bilateral trade, may experience significant setbacks in its contribution to India's economic output.
- Country:
- India
The announcement of a 50% tariff hike by the US on steel and aluminium products is raising alarm among India's engineering exporters. They are appealing for government intervention to prevent potential damage to the sector, which is a vital contributor to economic growth and job creation.
As of June 4, the increased duties threaten to destabilize India's engineering exports, which account for a significant portion of national merchandise exports. Concerns are mounting as these products are integral to US industries such as automotive and construction, where Indian firms have invested heavily.
With approximately USD 20 billion in exports vulnerable to the tariff hike, there are calls for urgent action in ongoing trade negotiations. It is crucial to secure exemptions to safeguard this sector from order losses and job cuts, influencing over 25,000 Indian firms.
(With inputs from agencies.)
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