Shakedown in sight for engineering goods, electronics

Donald Trump's sweeping reciprocal tariffs threaten to disrupt Indian exports in key sectors like engineering and electronic goods, potentially reshaping supply chains and shrinking export revenue as businesses brace for impact.

- Rhik Kundu

With the US being the leading destination for India's engineering exports, the sector is likely to suffer till India strengthens its presence in other markets or finds respite for the sector in the upcoming trade deal. India's electronics exports too will face pressure from reciprocal tariffs. However, relatively higher tariffs on rivals like Vietnam, China, Bangladesh, and Cambodia could ease some of the impact on India.

"Our preliminary estimate is that engineering goods exports to the US could drop by $4-5 billion in the first year. The exact impact on engineering exports to the US cannot be determined at present since it will depend on the ability of the American market to absorb these duties," said Pankaj Chadha, chairman of the Engineering Export Promotion Council of (EEPC) India.