India's MSME exporters are calling on the Commerce Ministry to help exempt the $1 billion worth of steel goods in transit, impacted by the new tariff imposed by the US, in a high-level meeting on Thursday.
“Total exports of $5 billion are being impacted by the new 25% tariff announced by the Trump administration, primarily in iron and steel products. Of this, $1 billion worth of goods are already en route to the US," said Pankaj Chadha, chairman of the Engineering Exports Promotion Council, who attended today's meeting and brought up the concern.
The meeting, chaired by Commerce Minister Piyush Goyal, saw the participation of the Commerce Secretary and the Director General of Foreign Trade (DGFT), alongside representatives from all 14 EPCs.
Held a stakeholder consultation meeting with Export Promotion Councils and Industry Associations to discuss strategies for strengthening India's export ecosystem.
The optimism among our industry stakeholders in transforming global challenges into opportunities is truly… pic.twitter.com/QB9eEEOAzyChadha further stated that MSMEs account for $3 billion of the total exports are the worst hit and requested Goyal to look into the waiver of duty. MSMEs are responsible for exporting products like nuts, bolts and screws, that come under Chapter 73, which has seen a 25% tariff imposition from the US.
Pankaj Chadha, chairman of Engineering Exports Promotion Council. (Source: EEPC India)
Meeting Details
With just 18 days left in the current fiscal year, the ministry urged EPCs to continue pushing for the ambitious $2 trillion exports target by 2030.
Exporters, however, remain concerned over a lack of clarity on tariff structures.
According to sources, the EPCs provided sector-specific feedback to the government, highlighting challenges such as fluctuating demand, supply chain disruptions, and high logistics costs.
According to PIB, Goyal told representatives that the government has reached final stages in FTAs with few in particular. He also cautioned EPCs to come out of their "protectionist mindset" and encouraged them to be bold. "Additional increase in Exports in the last fortnight will usher in the confidence of the exporters to try and aspire to cross $900 billion exports in the coming year," Goyal said.
The meeting comes at a crucial time, before the April 2 deadline called for by the Trump administration for the imposition of reciprocal tariffs. Sources also suggested that exporters, wary of potential tariff shifts, may have held back shipments, raising the likelihood of further contraction in February trade data.
Earlier this week, sources told us that the government is also working on implementing incentives worth Rs 2,250 crore for exporters to address declining outbound shipments.
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