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India-US trade deal: Aerospace supply chain gauges impact

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NEW DELHI: US President Donald Trump’s decision to impose 25% tariff on exports from India starting Aug 1 saw the thriving aerospace supply chain industry here, along with their big customers including American major Boeing, rush for calculators to estimate the impact of the same. Boeing’s annual exports from over 320 Indian suppliers of components and parts for its supply chain is about $1.3 billion. Sources say, “Discussions around impact are ongoing.” “There is a tariff in the EU-US deal too. But that is not applied to aerospace under the 1979 trade norms,” they add, hoping that the same will apply to the trade deal which India and the US strike in comings months.Senior officials of some leading aerospace component suppliers in India said: “We will be affected by the tariff but it is important to remember Boeing requires supplies to speed up its aircraft assembly rate. If the supplies are hit by tariffs and they become more expensive, Boeing will also suffer a lot.”

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