EEPC India hosts open house on India-US trade deal; Exporters raise concerns over tariffs and policy uncertainty

EEPC India hosts open house on India-US trade deal; Exporters raise concerns over tariffs and policy uncertainity

EEPC India on Friday held an open house session in Delhi to discuss the ongoing India-US Bilateral Trade Agreement (BTA) negotiations.

During the interaction, EEPC India members voiced serious concerns about the impact of US trade policies on Indian exports, citing delayed orders due to policy uncertainty.

They noted that ongoing policy unpredictability is making it increasingly challenging for businesses to plan and grow, as US buyers hesitate to place orders.

Rajesh Agrawal, top official in the Department of Commerce was the chief guest of the session.

Exporters highlighted that even during the India-US BTA talks, the US recently doubled tariffs under Section 232—from 25% to 50%—on steel, steel products, and aluminium. Auto components face a 25% duty, while other items are taxed at 10%.

They pointed that India, unlike trade partners such as Canada, Mexico, and the UK, does not benefit from US tariff exemptions. This places Indian exporters at a competitive disadvantage, particularly for low-margin goods that are easily substitutable and highly sensitive to price fluctuations.

Speaking at the event, EEPC India Chairman Pankaj Chadha acknowledged that while BTA may take time, India must ensure that its final agreement is on par or better than those of other US trade partners.

Vice Chairman Aakash Shah noted that India’s share in the US engineering import market remains modest, ranking 13th with only a 1.8% share. “These small figures might offer India an opportunity to request more favourable trade terms under the ongoing BTA discussions to support its engineering exporters,” he said.

Representatives from the aluminium sector also raised the the challenge of high electricity costs in India, which significantly drive up production expenses. In comparison, countries like Canada and several European nations benefit from more affordable renewable energy, enabling them to offer more competitive pricing and capture greater market share in the US. Additionally, aluminium producers in the Middle East, including the UAE and Bahrain, are rapidly expanding their presence.

Despite these challenges, members of EEPC India expressed appreciation for the government’s ongoing support in navigating trade and policy issues impacting the engineering export sector.