No new shocks for Indian steel, aluminium, auto companies

The tariff on auto parts will weigh on Indian suppliers' margins as US car firms cannot pass the entire cost hike to customers

- Nehal Chaliawala

Indian steel and automotive companies will face no additional trade barriers over and above the previously announced 25% import duties, according to a fact sheet published by the White House shortly after US President Donald Trump announced reciprocal tariffs of 27% on Indian goods on Wednesday. Steel and aluminium articles, and automobiles and auto parts, on which Trump earlier announced blanket 25% tariffs, would be exempt from Wednesday's reciprocal tariffs, the White House said.

However, existing concerns remain. While India's automobile exports to the US are negligible, the country is a significant destination of Indian-made auto parts. India is estimated to export about $6.8 billion in auto parts to North America, as per the Automotive Component Manufacturers Association of India (ACMA). The bulk of these shipments go to the US.