As a leading manufacturer and exporter of precision brass components, TulsiBrass Industries operates at the forefront of India’s brass industry, serving global markets in automotive, electrical, plumbing, and industrial sectors. Recent trade agreements, including the US-China tariff reduction, the India-UK Free Trade Agreement (FTA), and ongoing US-India trade negotiations, are reshaping the global trade landscape. This blog explores how these developments affect India’s brass industry and position companies like TulsiBrass Industries to adapt and thrive.

1. The India-UK Free Trade Agreement: A Gateway to Growth

Finalized in May 2025, the India-UK FTA marks a significant milestone for Indian exporters. The agreement eliminates tariffs on 90% of UK product categories, with 85% set to become tariff-free within a decade. For the brass industry, this includes zero tariffs on components critical to industries such as automotive (e.g., fittings and connectors), plumbing (e.g., valves and faucets), and electrical systems (e.g., terminals and conductors).

This tariff reduction enhances the competitiveness of Indian brass exports in the UK, a market with a growing demand for high-quality, precision-engineered components. For TulsiBrass Industries, the FTA facilitates access to UK-based manufacturers seeking reliable suppliers, potentially increasing export volumes. Additionally, the agreement’s provisions for streamlined customs procedures and mutual recognition of standards reduce trade barriers, enabling smoother operations for exporters.

2. US-China Trade Agreement: Opportunities Amid Competition

The US-China trade agreement, effective from May 2025, introduces a 90-day tariff reduction, lowering US tariffs on Chinese goods from 145% to 30% and Chinese tariffs on US goods from 125% to 10%. This shift narrows India’s previous tariff advantage in the US market, as Chinese brass components—used in similar applications as Indian products—become more price-competitive.

However, the global trend toward supply chain diversification continues to favor India. Geopolitical tensions and trade uncertainties have prompted multinational companies to reduce reliance on Chinese manufacturing, positioning India as a strategic alternative. TulsiBrass Industries benefits from India’s established brass manufacturing ecosystem, centered in regions like Jamnagar, Gujarat, which produces over 70% of India’s brass components. With a focus on quality and cost-efficiency, the company is well-equipped to meet the needs of US buyers seeking stable, high-quality supply chains.

3. US-India Trade Negotiations: A Potential Catalyst

Ongoing negotiations for a US-India “mini-deal” aim to reduce tariffs and address trade irritants, such as India’s retaliatory tariffs on US goods in response to steel and aluminum duties. While the deal’s scope remains under discussion, a successful agreement could lower barriers for Indian brass exports to the US, the world’s largest market for industrial components.

The potential inclusion of brass components in tariff reductions would enhance market access for TulsiBrass Industries, particularly for products like precision-turned parts and fittings used in automotive and electronics manufacturing. Moreover, the US-India shrimp Regional Partnership Agreement (RPA), announced in May 2025, signals improving bilateral relations, which could pave the way for broader trade cooperation. For the brass industry, this creates optimism for future export growth, though challenges like compliance with US quality standards and logistics costs remain.

4. Global Trade Dynamics: Challenges and Opportunities

The brass industry faces a complex global trade environment. The reintroduction of tariffs by the US, including a 10% duty on British exports and potential 20% tariffs on EU goods, underscores the volatility of international trade. These measures could disrupt supply chains, prompting manufacturers to seek stable suppliers like India, which offers competitive pricing and a skilled workforce.

However, challenges persist. The Indian rupee’s appreciation to 84.55 against the US dollar as of May 2025 may reduce export competitiveness, though stabilized global commodity prices for copper and zinc—key raw materials for brass—provide some relief. Additionally, small and medium enterprises (SMEs) like TulsiBrass Industries must navigate stringent trade compliance requirements, such as environmental regulations and certifications (e.g., RoHS and REACH), to maintain access to developed markets.

5. TulsiBrass Industries: Positioning for the Future

TulsiBrass Industries, based in Jamnagar, leverages India’s reputation as a global hub for brass manufacturing. With expertise in producing components for diverse applications, the company is adapting to the evolving trade landscape through strategic initiatives:

Quality Assurance: Adherence to international standards ensures compliance with market-specific requirements, enhancing trust among global clients.

Operational Efficiency: Investments in advanced manufacturing technologies, such as CNC machining and automated quality control, enable cost-effective production without compromising precision.

Sustainability: Efforts to reduce energy consumption and adopt eco-friendly practices align with global demand for sustainable manufacturing.

These strengths position TulsiBrass Industries to capitalize on opportunities created by the India-UK FTA and potential US market openings, while addressing challenges like increased competition and currency fluctuations.

6. The Broader Impact on India’s Brass Industry

India’s brass industry, valued at approximately $2 billion annually, supports thousands of SMEs and employs over 500,000 workers, primarily in Gujarat. The recent trade agreements bolster the industry’s export potential, which accounts for nearly 40% of production. By reducing tariffs and enhancing market access, these deals enable Indian manufacturers to compete with global players, particularly in high-value markets like the UK and US.

Moreover, India’s brass industry benefits from its integration into global value chains. For instance, brass components are critical to the automotive sector’s shift toward electric vehicles (EVs), where precision parts are used in battery systems and charging infrastructure. Similarly, the construction and renewable energy sectors rely on brass for durable, corrosion-resistant fittings. As global demand for these applications grows, companies like TulsiBrass Industries are poised to play a pivotal role.

Conclusion

The US-China trade agreement, India-UK FTA, and US-India negotiations present a mix of opportunities and challenges for India’s brass industry. For TulsiBrass Industries, these developments underscore the importance of agility, quality, and strategic market engagement. By leveraging India’s manufacturing strengths and adapting to global trade dynamics, the company is well-positioned to contribute to the industry’s growth and meet the evolving needs of its international clients.