The Engineering Exports Promotion Council (EEPC) has expressed serious concern over Trump Tariffs that pose a direct threat to exporting community.
In addition to the gems and jewellery, handicrafts, chemicals, drugs and pharma, engineering goods too face a stiff challenge in the short run.
Pankaj Chadda, Chairman, EEPC India, said the new tariffs were a big jolt to engineering exports sector, for which the US is the biggest market.
“While Indian exporters have been facing a fair amount of uncertainties ever since President Donald Trump announced reciprocal tariffs on most of its trade partners, in India, we never thought that the tariff would go as high as 50%. It was hoped that India and the US would sign an interim trade deal, and the US sooner rather than later. However, the recent developments on the trade front by the US have been very disappointing and disturbing,” Chadda said.
“The 50% tariff on engineering goods is set to make us uncompetitive in our top export markets. When the US imposed a 25% tariff on Indian goods earlier, we thought we would somehow manage and stay competitive vis-à-vis our close rivals, including China, but with the tariff now doubling, we are now in a very disadvantageous position. While we continue to explore new markets and diverse product portfolios, we are looking to the government to help us navigate the new set of challenges,” the EEPC chief said.
Other than engineering goods, Noida-based garment exporters are also facing the heat. Rajeev Bansal, National Vice President of the Indian Industries Association, said that garment exports from Noida amount to nearly Rs 50,000 crore, of which 40% comes from the United States. Following the impact of Trump’s tariffs, exporters have suffered steep losses. He urged the government to provide incentives to help exporters sustain their businesses. He also demanded that traders who have taken loans be given relief in paying EMIs or be allowed to defer payments, similar to the relief provided during the Covid period. Bansal further stressed that the country must look for alternative markets to remain competitive in this sector.
