Trump’s tariff hike on automobile sector need not be a huge bother
By Pradeep Damodaran, Pragadish Kirubakaran and Neeraja Gopalakrishnan in Media News on Friday, 28th March 2025 at 4:07pmUS President Trump has announced plans to impose a 25 per cent tariff on imported cars and some components starting next week, a move that sets the stage for retaliation by others, including the EU and Canada, which have slammed the move. India Inc is reportedly in a wait-and-watch mode.
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While Indian automakers will largely escape unscathed immediately, given the tiny exposure of the small vehicles made by them, industry players said the real impact could be in segments such as components and tyres, where the US is the biggest export market. Tata Motors-owned Jaguar Land Rover could be one of the companies to be hit, wrote Nandini Sengupta for The Times of India.
With exports of $2.2 billion, the US accounted for 29 per cent of all auto parts shipped from India. Si...
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