Fear of reciprocal tariffs may take toll on March exports

Local exporters are hesitant to ship engineering goods to the US, say industry representatives

- Dhirendra Kumar

Key Indian exports may have started cooling even before US President Donald Trump's reciprocal tariffs roll out. Worried that higher levies may kick in by the time products land on American shores, local exporters are hesitant to ship engineering goods to the US, according to industry representatives. The delay means outbound shipments for the category, which accounts for about a quarter of India's merchandise exports, are expected to decline in March.

Sea freight, the most common method for bulk overseas trade, typically takes between 25 and 45 days to reach the US. "The concern is that if new tariffs are introduced while goods are in transit, businesses will have to bear the impact of revised duties, which is a significant challenge," said Pankaj Chadha, chairman of the Engineering Export Promotion Council (EEPC). "The easiest solution would be a bilateral deal, but there is no chance of it happening before 2 April."