India’s Small Exporters Request Duty Cuts to Mitigate U.S. Tariffs Impact
India’s small engineering exporters are calling for tariff reductions on U.S. imports to counteract the impact of U.S. tariffs on steel and aluminum, which could affect $7.5 billion of exports. The Engineering Export Promotion Council urges the government to negotiate favorable terms to support the industry amid rising costs and declining orders, with trade talks ongoing in the U.S.
India’s small engineering exporters are advocating for the government to lower import tariffs on specific U.S. goods. This action is sought in response to the impending implementation of 25% tariffs on steel and aluminum by the United States, effective March 12. The chairman of the Engineering Export Promotion Council, Pankaj Chadha, articulated that around $7.5 billion of India’s $20 billion annual engineering goods exports could be adversely impacted due to these tariffs, causing concern over diminishing orders and increasing operational costs.
Chadha indicated that both the EEPC and other industry groups have approached the government with requests for tariff reductions on select U.S. imports. Lowering duties may incentivize the Trump administration to engage in favorable negotiations regarding a potential bilateral trade agreement. With Trump categorizing India as a high-tariff nation, he has suggested that reciprocal tariffs could ensue shortly.
Amidst ongoing trade discussions in the U.S. led by India’s trade minister, Piyush Goyal, there is optimism regarding achieving tariff reductions. Potential examples of cuts include reducing the import duty on U.S. steel scrap from 7.5% to almost zero, in addition to lowering taxes on various manufacturing items such as nuts and castings.
Concerns also arise from India’s planned safeguard duty of up to 14% on steel imports to protect local manufacturers from cheaper Chinese steel imports, which could exacerbate domestic prices and hamper exporters’ margins. Engineering exports to the U.S. experienced an 18% year-on-year increase in January, totaling $1.62 billion, demonstrating resilience with a rise in the export of various engineering products.
In conclusion, India’s small exporters are actively seeking import duty reductions to mitigate the adverse effects of U.S. steel and aluminum tariffs. The potential negotiation of favorable trade terms is critical for maintaining competitiveness in the face of rising costs and declining orders. Continued government support is essential to safeguard the interests of the engineering sector and facilitate growth amidst global trade challenges.
Original Source: www.hindustantimes.com
Post Comment