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Indian Express
3 days ago
- Business
- Indian Express
Trump doubles steel, aluminium tariffs to 50% from June 4, exporters say ‘complicates trade talks'
US steel tariffs update: US PRESIDENT Donald Trump Friday announced he would double import tariffs on steel to 50 per cent, a move that was termed 'unfortunate' by India's exporters, who said this made trade talks 'much more difficult and complicated'. Addressing a rally at a US steel plant in West Mifflin, Pennsylvania, Trump said Friday, the sharp hike in tariffs on steel from 25 per cent to 50 per cent will 'even further secure the steel industry in the United States'. 'Nobody's going to get around that,' he said. Later in a social media post, Trump said, 'It is my great honour to raise the tariffs on steel and aluminium from 25% to 50%, effective Wednesday, June 4th. Our steel and aluminium industries are coming back like never before. This will be yet another BIG jolt of great news for our wonderful steel and aluminium workers. Make America Great Again.' This fresh tariff hike follows a similar increase earlier this year, when Trump raised tariffs on aluminium and steel to 25 per cent. Exporters had told the Union Ministry of Commerce and Industry that exports worth $5 billion were affected. 'It's unfortunate that, while bilateral trade agreement (BTA) negotiations are ongoing, such unilateral tariff hikes are being introduced. It only makes the work of negotiators much more difficult and complicated. This will definitely impact engineering exports, which currently stand at around $5 billion under this category,' said Pankaj Chadha, Chairman, Engineering Export Promotion Council (EEPC) India. 'We urge that, since the UK has been granted exemption from Section 232, India should also be extended a similar exemption, possibly under tariff rate quota (TRQ) restrictions.' Federation of Indian Exporters' Organisation President S C Ralhan said the proposed tariff hike will have a significant bearing on steel exports, especially in semi-finished and finished categories like stainless steel pipes, structural steel components, and automotive steel parts. 'These products are part of India's growing engineering exports, and higher duties could erode our price competitiveness in the American market,' he said. The tariff hike has been implemented under Section 232 of the US Trade Expansion Act of 1962, a law that allows the President to impose tariffs or other trade restrictions if imports are deemed a threat to national security. Trump first invoked this provision in 2018 to impose a 25 per cent tariff on steel and 10 per cent on aluminium. US tariffs on steel and aluminium tend to trigger ripple effects globally. During Trump's first term, the European Union imposed restrictions on Indian exporters in response to similar US measures. Ajay Srivastava, head of think tank GTRI, said, 'The economic impact of these higher tariffs will be significant. US steel prices are already high, at around $984 per metric tonne — far above European prices at $690 and Chinese prices at $392.' He said this is expected to push prices in the US to around $1,180 per metric tonne, squeezing domestic industries such as automotive, construction, and manufacturing that depend heavily on steel and aluminium as key inputs. 'Sectors may face hundreds of dollars in additional material costs per tonne, driving up prices, reducing competitiveness, and risking job losses or inflationary pressures,' he said. 'For India, the consequences are direct. In FY2025, India exported $4.56 billion worth of iron, steel, and aluminium products to the US, including $587.5 million in iron and steel, $3.1 billion in articles of iron or steel, and $860 million in aluminium and related articles. These exports are now exposed to sharply higher US tariffs, threatening the profitability of Indian producers and exporters,' GTRI said in a note following Trump's announcement. India has already issued a formal notice at the World Trade Organization (WTO) signalling its intention to impose retaliatory tariffs on US goods in response to the earlier steel tariffs. With Trump now doubling the duties, it remains to be seen whether India will proceed with retaliation, potentially by increasing tariffs on select US exports within a month. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
Hans India
28-04-2025
- Business
- Hans India
India's engineering goods exports touch all-time high of $116.7 billion in 2024-25
New Delhi: India's engineering goods exports recorded a growth of 6.74 per cent to scale an all-time high of $116.67 billion in for the financial year ended on March 31, 2025, according to figures compiled by the Engineering Export Promotion Council (EEPC). The total value of engineering exports stood at $109.30 billion in 2023-24 while the earlier record level was $112.10 billion achieved in fiscal 2021-22. While the US remained the number one destination for Indian engineering exports in FY25, significant export growth was noted in the UAE, Singapore, Nepal, Japan and France. Engineering goods exports to the US grew 8.7 per cent to $19.15 billion in FY25 from $17.62 billion in FY24. The share of engineering exports in India's overall merchandise exports increased to 26.67 per cent in 2024-25 from 25.01 per cent in the previous fiscal year. "The performance of Indian engineering exports was remarkable in 2024-25 as it came during a period of extreme global uncertainty following geopolitical disturbances and economic slowdown in major developed and emerging nations. This was further aggravated by US President Donald Trump's decision to raise import duty on dozens of its trade partners, including India," said Pankaj Chadha, Chairman, EEPC India. As many as 28 out of 34 engineering panels recorded positive growth, and the remaining six engineering panels, including iron and steel, some non-ferrous sectors, including copper and aluminum products, office equipment, other construction machinery, and mica products, recorded negative growth during April-March 2024-25. North America maintained its spot as the number one export destination with a share of 20.5 per cent, followed by the EU (17.1 per cent) and WANA (West Asia and North Africa) (16.7 pear cent) in 2024-25. In cumulative terms, all regions experienced growth, barring Oceania (-10.4 per cent) and the EU (-1.9 per cent) in the financial year ending March 2025. Despite achieving a record high figure in 2024-25, Indian engineering exports declined on a monthly basis in March 2025. Engineering exports in March 2025 were recorded at $10.82 billion as against US$11.27 billion in March 2024, registering a decline of 3.92 per cent year-on-year. "In the coming days, the engineering exporting community of India needs to prepare for the continually changing and uncertain global trade dynamics. The global trade is undergoing significant disruptions, the most important being the announcement of US President Donald Trump's 'Liberation Day Tariff,' which has already sparked retaliatory measures from other countries and concerns about global economic stability," said Chadha. The WTO has already sounded caution, stating that under the current conditions, the volume of global merchandise trade is likely to fall by 0.2 per cent in 2025. As per the WTO, a temporary tariff pause by the US may arrest some trade contraction, there are significant downside risks, including retaliation by other countries and policy uncertainty, which may further impact global trade volume by around 1.5 per cent, particularly hurting the export-oriented least developed countries. "In this situation, it is important for the government and the industry to adopt strategies that will help us mitigate the issue to our advantage. The decision to negotiate a bilateral trade agreement with the US is a welcome step. Simultaneous to this, it is also essential for us to diversify our export destinations," the EEPC India Chairman added.
Mint
22-04-2025
- Business
- Mint
Scorching sun, wilting workers: Across mines and factories, heatwaves are taking a terrible toll
As summer arrives ahead of schedule in India, warnings of intense heatwaves are raising alarms across the nation's industrial heartlands. With millions of workers toiling in factories and mines without protection from heat, industry experts warn that soaring temperatures could throttle productivity, risking a slowdown in India's vital manufacturing sector. The weather office has issued heat wave alerts for south Uttar Pradesh, Madhya Pradesh, Rajasthan, southern Haryana and Maharashtra's Vidarbha over multiple days until 24 April. For most of the country, there is little relief until the annual monsoon rains arrive. Labour-intensive sectors like textiles, leather, and small-scale engineering units are expected to bear the brunt of heatwaves, industry experts said. 'The manufacturing of steel is getting indirectly impacted due to the intense heatwaves, as most furnaces are located in open environments and the rising temperatures are affecting workers' performance," said Pankaj Chadha, chairman of the Engineering Export Promotion Council (EEPC). Many of India's steel plants are located in regions scorched by heatwaves. Also read | Severe heatwave to result in production loss in heat-intensive industries Globally, March 2025 was the second-warmest on record after March last year, with average surface air temperatures 1.6 degree Celsius above the pre-industrial period. Studies have shown that heatwaves in India have become more frequent, intense and longer-lasting than before. Prolonged exposure to extreme heat affects worker and machine efficiency, leading to delays in production schedules and higher operational costs. Chadha of EEPC said that a recurring shortage of migrant workers during the April to June period is compounding challenges. 'It would be a little early to estimate the quantum of production loss at this stage," Chadha said. However, he added that compared to the impact of tariffs imposed by the US, a key trading partner, the disruption caused by the heatwave is of relatively lesser concern for the industry, at least for now. The rise in temperatures is hitting hardest at factories that operate furnaces, boilers, and other heat-generating equipment. Steel production requires melting raw materials at temperatures above 1,500°C before refining and casting them into shapes. Likewise, the manufacturing of engineering goods involves heat-intensive processes such as casting, forging, and welding. According to Harsh Bansal, managing director of BMW Industries , a steel maker and trader, rising temperatures present a dual challenge for steel processing: reduced production and heightened risks to worker safety. He emphasized that increased heat strains both machinery and personnel. Also read | As temperatures soar, consumers rush for air conditioners, coolers to beat the heat 'Prolonged exposure to extreme heat puts workers at risk of fatigue, heat stress, dehydration, and other serious health complications," Bansal said, pointing to his company prioritizing plant ventilation, heat management systems, adjusting shift patterns and strengthening health protocols. There is no immediate relief in sight either. The India Meteorological Department (IMD) has projected a gradual increase of 2-3°C in maximum temperatures across northwest India, comprising the states of Haryana, Himachal Pradesh, Jammu and Kashmir, Ladakh, Punjab, Rajasthan, Uttarakhand, and Uttar Pradesh, over the next five days. According to IMD, central India may see a rise of 2–3°C in temperatures after the next 24 hours, while eastern India is likely to experience a sharper increase of 4–6°C over the following four days. Temperatures are currently hovering between 35°C and 40°C, and in the coming days, they may rise further to around 44°C. According to P.R. Sinha of Trimex Industries, head of regulatory affairs at Trimex Industries, a mineral processing and trading company, the industry increasing heat affects worker safety, operational output, and the stability of infrastructure. He pointed out that excessive heat can deteriorate equipment functionality, noting that high-capacity underground ventilation and spot cooling units can help lower workplace temperatures and improve miner safety. Also read | Cyclones, heatwaves push up insurance cost for India's wind power projects 'With the recent intense western disturbance having passed, maximum temperatures are expected to rise over northwest and central India," said K.J. Ramesh, former director general of IMD. 'As of now, we have not yet projected the expected loss in value terms. However, given the scale of the manufacturing industry, we anticipate a significant decline—possibly between 10% to 15% in the coming months," said Arun Kumar Garodia, a former chairman of EEPC and managing director of Corona Steel Industry Pvt. Ltd, which makes light engineering goods. "Severe heatwaves not only pose serious health risks but also significantly affect workers' productivity," said Dr. Yudhyavir Singh, associate professor of critical care at Delhi's All India Institute of Medical Sciences (AIIMS). 'Extreme heat conditions demand changes in work hours, adequate hydration, and frequent rotation of labour to prevent heat stress and maintain efficiency." 'When workers are exposed to high temperatures without proper rest or ventilation, it can lead to heat cramps, heat stroke, and other health issues. Common symptoms include nausea, vomiting, dizziness, excessive sweating, fever, and in extreme cases, seizures or convulsions. Preventive steps like wearing heat-protective gear, using wet cloth covers, and taking breaks in shaded or ventilated spaces are essential to safeguard health and sustain output," he added. Workers in sectors like pharmaceuticals are expected to remain relatively insulated due to their temperature-controlled manufacturing environments. Read this | Heatwaves to be more devastating than floods in future; economic growth to be impacted more, say experts 'Industries like textiles, shoemaking, and food and beverage processing, which rely heavily on manual labour, are more vulnerable to the operational challenges brought on by heatwaves," said Ajay Srivastava, co-founder of Global Trade Research Initiative (GTRI). 'Heat waves will be significantly disruptive for manufacturing and other sectors in India. We need to substantially liberalize open access and captive generation regulations so that manufacturing units can leverage cheap solar power to improve working conditions and productivity in their units," said Rahul Ahluwalia, founder and director of Foundation for Economic Development (FED), a policy advocacy organization. 'MSMEs in India are generally very wary of heatwaves and the significant challenges faced, right from impacting production due to supply chain disruptions, especially in agri inputs, power outages, productivity losses, increased energy costs, apart from causing heat-related illnesses in workers due to extreme temperatures, disrupting operations," said Vinod Kumar, president of India SME Forum, calling for heat action plans to mitigate impact. India's trade deficit widened sharply to $21.54 billion in March, rising from a three-year low of $14.05 billion in February. Merchandise exports for FY25 stood at $437.42 billion, marginally higher than the $437.07 billion recorded in FY24, while goods imports came in at $720.24 billion in FY25, which was $678.21 billion in FY24, as per commerce ministry data. And read | On eve of Trump's tariff war, Indian industry braces for severe global consequences March's goods exports stood at $41.97 billion, while imports were $63.51 billion, compared with $36.91 billion of exports and $50.96 billion of imports in February. 'Extreme weather conditions, such as the ongoing heatwave, are putting significant stress on supply chains, yet again highlighting the growing importance of cold chain logistics," said Swarup Bose, founder and chief executive, Celcius Logistics. "During this season, we are observing a noticeable surge in demand for cold chain reefer vehicles and cold storages as businesses work towards protecting temperature-sensitive products—from fresh produce to pharmaceuticals—from spoilage and quality loss," Bose said.
Reuters
05-03-2025
- Business
- Reuters
India's small exporters seek import duty cuts to counter US steel, aluminium tariffs
NEW DELHI, March 5 (Reuters) - India's small engineering goods exporters have urged the government to cut import tariffs on some U.S. goods to try and achieve more favourable trade terms as President Donald Trump prepares to implement new steel and aluminium duties, the head of an industry body said. The 25% U.S. tariffs on steel and aluminium imports, effective March 12, have raised Indian exporters' concerns about declining orders and rising costs. "Of India's $20 billion annual engineering goods exports, nearly $7.5 billion worth of shipments could be affected," said Pankaj Chadha, chairman of the Engineering Export Promotion Council, which represents more than 10,000 small exporters. The EEPC and other industry chambers have urged the government to cut tariffs on select U.S. goods with low inbound shipments, Chadha told Reuters on Wednesday. They expect that lowering such tariffs could prompt the Trump administration to offer favourable terms and move forward with a proposed bilateral trade deal. Trump has labelled India a high-tariff country and warned of "reciprocal tariffs" from early April. India's trade minister Piyush Goyal is in the U.S. for trade talks, aiming to negotiate potential tariff cuts as part of the proposed trade deal and to assess the impact of Trump's planned reciprocal tariffs. India could, for instance, cut import duty on U.S. steel scrap from 7.5% to nearly zero, and reduce tariffs on nuts, castings and forgings while offering concessions on selected agricultural and manufacturing items, Chadha said. Exporters also fear that India's planned safeguard duty of up to 14% on steel imports, aimed at protecting local steel manufacturers from cheaper Chinese imports, will drive up domestic prices and squeeze their margins. India's exports of engineering goods to the U.S. jumped 18% year-on-year in January to $1.62 billion, outpacing the sector's overall growth of 7.44% ahead of the tariffs, EEPC data showed. From April 2024 to January 2025, the first 10 months of the fiscal year, engineering exports to the U.S. rose by an annual 9% to $15.6 billion, driven by an increase in shipments of aircraft parts, electrical machinery, automobiles, industrial machinery and medical instruments. "The engineering industry faces major challenges, and the latest U.S. tariffs add pressure. Continued government support in export credit and technology is crucial for competitiveness," Chadha said. India's global engineering exports, which account for a quarter of total merchandise exports, rose to $9.42 billion in January from $8.77 billion a year earlier, though were lower than December's $10.84 billion. Cumulative exports for April-January rose 9.82% year-on-year to $96.75 billion, EEPC data showed.
Zawya
14-02-2025
- Business
- Zawya
Indian industries see opportunity in Trump's trade goals
Indian industry and trade experts see an opportunity to expand business with the U.S. after Prime Minister Narendra Modi met President Donald Trump, despite uncertainties over reciprocal tariffs and thanks to steps taken in the past few years. India and the U.S. agreed on Thursday to resume talks to clinch a trade deal later this year, a proposal that did not bear fruit during Trump's first term, with a goal of more than doubling bilateral trade to $500 billion this decade. India has promised to buy more U.S. defence, energy and other products. New Delhi has in the past largely dithered on trade deals fearing an onslaught of imports that could hurt domestic producers, but Indian companies are much more competitive now, partly due to government incentives like corporate tax cuts and manufacturers' own initiatives to step up quality and widen their global distribution network, industry leaders said. "Absolutely, to resume talks to clinch a trade deal later this year," said Ajay Sahai, director general at the Federation of India Export Organisations (FIEO), representing more than 37,000 exporters. "The economy has become more competitive in last four years." India's manufacturers in areas including auto components, garments, electronics and jewellery have moved to high-quality products and expanded distribution in North America, as U.S. companies looked at alternatives to China in the past few years, he said. In the past few years, the government has rolled out billions of dollars in corporate tax cuts and other incentives for domestic manufacturers to enhance their competitiveness. It has also invested in roads and ports, bringing down costs for companies. "Our exports to the U.S. would definitely go up if there is a bilateral deal as we have invested in new products, technologies and tied with buyers," said Pankaj Chadha, chairman of Engineering Export Promotion Council, and an exporter of engineering goods worth $20 million a year to the U.S. MODI'S MOVES Indian manufacturers especially in labour-intensive areas such as textiles, footwear, engineering goods, solar panels, and electronics could particularly benefit from a trade deal, Sahai said, as they do not directly compete with the U.S. India's goods and services trade with the U.S., the country's largest trading partner, jumped more than a third in five years through 2023 to $190 billion, with a surplus of $50 billion in favour of India. India's goods exports to the U.S was $73.8 billion in 2024, including medicines, telecom instruments, jewellery, petroleum products, garments, and engineering goods. Ajay Srivastava, founder of New Delhi think tank Global Trade Research Initiative, said that for nearly 75% of U.S. exports to India, like petroleum products and chemicals, average tariffs are already below 5%, so a trade deal that could scrap duties is unlikely to be a major concern. Indian government officials, however, are waiting for the return of Modi to consult local industry leaders to address their concerns in any trade deal, a government adviser said on the condition of anonymity. Analysts said after India's tariff cuts on various items such as high-end bikes in the annual budget this month, it could go for further reductions, excluding in the politically sensitive agricultural sector, to boost bilateral trade. "PM Modi may be able to wangle some exceptions/favourable deals, but that would likely entail lowering import duties for some products, as well as higher Indian purchases of U.S. goods, with defence and energy being prime sectors," said Madhavi Arora, chief economist at brokerage Emkay Global.
