India’s engineering exporters have raised a fresh concern over widening tariff gaps that are eroding the country’s competitiveness in key Western markets. On November 10 2025, the Engineering Export Promotion Council of India (EEPC India) urged the government to place steel and aluminium products, especially those made by MSMEs, at the centre of ongoing bilateral trade talks with the US.
Pressure from US Section 232 tariffs
EEPC India said the 50 per cent US tariffs under Section 232 have significantly impacted engineering exports, deepening the disadvantage for Indian manufacturers. The tariff gap with global competitors has now widened to an average of 30 per cent, the council noted, warning that this gap is pushing Indian suppliers to the margins of the US market.
Pankaj Chadha, Chairman of EEPC India, stressed the urgency of policy support, stating, “A special support package that can absorb at least 15 per cent of this differential would help us secure our position.”
The US remains one of India’s top destinations for engineering goods, valued at billions annually. Small exporters often operate on slim margins, and tariff shocks can distort global supply chains overnight.