TARIFF TRUMPET DISRUPTS TRADEAD

Tariff pressures are significant as India's auto component industry adapts to global trade changes in the new order, writes Ashish Bhatia.

- Ashish Bhatia

The war of words that began with titles like “Tariff King” has India’s auto component industry, a vital contributor to the nation’s manufacturing and export sectors, currently navigating a complex global trade environment. The recent imposition of widespread tariffs levied by President Donald Trump on auto imports by the United States has introduced new challenges, compelling manufacturers globally to reassess strategies and explore avenues for resilience and growth.

Taking note of the executive order signed on April 02, 2025, as part of the “Liberation Day” initiative, ACMA, Shradha Suri Marwah, President of ACMA and CMD Subros Ltd., in a press note stated, “We understand the intent of the U.S. administration to boost domestic manufacturing and address trade imbalances. It is to be noted that autos and auto parts, and steel and aluminium articles, already subject to Section 232 tariffs at 25 per cent, announced earlier in President Trump's order on March 26, 2025, are not covered in the aforementioned order.” “The detailed list of auto components that will be subject to a 25 per cent import tariff in the US is, however, awaited,” the statement clarified. ACMA remains hopeful that the ongoing bilateral negotiations between the Indian and U.S. governments will lead to a balanced resolution that benefits both economies.