Engineering Goods Exporters Flag Big Job Hit From US Tariff

Sudden escalation in US tariff will wipe out a large portion of exports to the US, says EEPC

- Dhirendra Kumar

The steep 50% tariff imposed by the US on Indian goods is set to deal a heavy blow to the engineering sector, with exporters estimating nearly $7.5 billion in losses in FY26, which could trigger significant job cuts if the duty stays for long.

In an interview with Mint, Pankaj Chadha, chairman of the Engineering Export Promotion Council (EEPC), said that the sudden escalation in duties would wipe out a large portion of shipments to the US, India's biggest market for engineering goods. "The impact will be so severe that it will inevitably result in job losses, as domestic diversification is not possible for this much value of exports," he said.

India's engineering exports to the US were at $17.63 billion in FY24 and rose to $19.16 billion in FY25, an 8.7% rise. Chadha cautioned that the current fiscal could see a sharp reversal. "Earlier tariffs of 50% on steel and aluminum were damaging, but they were limited in scope. This time, the 50% duty applies to all engineering goods, which is huge," he said.