The US is implementing new tariffs on Indian exports, with a 25% increase taking effect from August 27. This increase brings total tariffs to around 50%, placing significant pressure on India’s auto industry. MSMEs, responsible for a large share of Indian exports, are expected to be significantly impacted. The imposition of tariffs will disrupt the economics of a significant share of India’s auto component exports and tyre exports. Components like engines and drivetrains will be subject to a 25% duty, while other parts could face a 50% tariff. The tyre sector and its replacement market will be greatly affected. Jaguar Land Rover, with substantial US market exposure, is highly vulnerable. The tariffs threaten India’s plans to capitalize on the ‘China+1’ strategy, as the high duties favor established markets, even with their own trade challenges.
Trump-Era Tariffs Hit Indian Auto Component and Tyre Exports Hard
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