Ever since Donald Trump has become the President of the United States. Since then he has taken a strong stand on countries exporting goods to the United States. These include Canada, from Mexico to China and now India is going to come from April 2. Donald Trump has announced that he is about to impose ‘reciprocal tariffs’ on India soon and its impact before its implementation has started to appear on the auto sector of India.
Effect appeared on the auto sector of the country
US President Donald Trump has already announced that he will impose his ‘Resiprocal Tariff’ policy on India from April 2. There are still a few hours left for its implementation. Nevertheless, the impact of the country has begun to appear on the auto sector. today, India is the fourth largest auto market in the world. Almost every company in the world is producing its own vehicles here. In this case, the auto part industry has a large stake in the auto sector here. Just before the Trump tariff is implemented, the impact on the industry is showing.
The effect of Trump tariffs appeared
Instead of direct action on any company or country auto market, Donald Trump has called for a 25 percent tariff on global auto manufacturers. Initially, this tariff will be fully imposed on the import of assembled vehicles. There is also talk of imposing separate tariffs on car related parts such as engine, transmission and electrical system. Many Indian auto parts companies are part of the supplier base of this global car manufacturers. Also, many foreign companies in India produce cars here and export it to various markets of the world and buy parts from the Indian market. Therefore, Trump tariffs are likely to affect them.
America’s largest market
The United States is the largest export market for Indian auto parts. According to data till March 31, 2024, this is Rs. One -third of the export of 1.8 lakh crore industry goes to the United States. India supplies auto parts from Ford to General Motors and Tesla. “The auto sector of the country is projected to be 2 percent in the current financial year 2025-26,” says Partho Banerjee, a senior official of Maruti Suzuki India. His statement shows that the demand for auto parts in India this year is low. And if Trump tariffs are implemented, the demand for auto parts may also be low abroad. If Donald Trump imposes a reciprocal tariff on India too. So the auto parts industry will face up to 15 % of import duty. The reason for this is that India is currently imposing such maximum tariffs on auto parts imported from the United States. If this tariff reaches 25 %, then India’s auto port industry will suffer huge losses.
