{"id":31898,"date":"2025-04-05T13:24:26","date_gmt":"2025-04-05T07:54:26","guid":{"rendered":"https:\/\/caronphone.com\/news\/?p=31898"},"modified":"2025-04-08T12:39:44","modified_gmt":"2025-04-08T07:09:44","slug":"tax-tariff-by-trump-on-indian-sectors-automobiles-key-highlights-list-of-reciprocal-tariffs-and-auto-industry-reactions","status":"publish","type":"post","link":"https:\/\/caronphone.com\/news\/tax-tariff-by-trump-on-indian-sectors-automobiles-key-highlights-list-of-reciprocal-tariffs-and-auto-industry-reactions\/","title":{"rendered":"TRUMP’s TAX TARIFF effect on Indian sectors Automobiles, Key highlights, List of reciprocal tariffs and Auto Industry Reactions"},"content":{"rendered":"\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"TRUMP&apos;s\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Donald Trump announced a 25% tariff on vehicles not assembled in the US, effective April 3. Auto parts exports from India may see a slight slowdown as US President Donald Trump\u2019s 25 per cent tariff could increase car prices for buyers by 8\u201325 per cent, thereby affecting demand. Even foreign-made components used in vehicles assembled domestically will be subject to these tariffs, complicating the supply chain for many automakers.<\/p>

Morover, global auto majors believe a possible free trade deal resulting from the Trump tariff could create a win-win situation for both domestic and international players.<\/p>

The Trump government’s reciprocal tariffs have been revised for at least 14 countries, including India.<\/p>

The move, he claimed, was necessary to revive American manufacturing and correct what he called \u201chorrendous imbalances\u201d in international trade.<\/p>

US President Trump also highlighted differences in the automobile industry. \u201cUntil today, the United States has for decades charged a 2.5 per cent tariff on foreign-made automobiles. The European Union charges us more than 10 per cent, and they have 20 per cent VATs\u2014much, much higher.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Key Highlights<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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  • 25% Tariff On Autos – President Trump’s announcement of a 25% tariff on foreign automakers. The tariff is applicable on auto components, unassembled vehicles and fully imported cars, according to the declaration.<\/li>
  • US Tariffs Not Fully Reciprocal – President Trump stated that the newly imposed tariffs on foreign automakers would not be fully reciprocal, clarifying that “we will charge them approximately half of what they charge.”<\/li>
  • During the announcement in the White House Rose Garden, Trump emphasised the U.S. is being fair by charging countries half of what they impose on American goods; India currently levies a 52% tariff on U.S. imports.<\/li>
  • Trump accused India of currency manipulation and trade restrictions, justifying the new tariff as a necessary countermeasure.<\/li>
  • According to ACMA, India exports around $6.8 billion in automobile components to the North American market. Initially, this may pinch the companies, but as the 25% tariff is standard across the globe, it is highly unlikely that the manufacturing facilities would shift out of India.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    \n\t\t\t\t\t\t\t\t\tTrump Tariff News Live: ‘Don’t see any significant impact on Indian auto industry,’ says SIAM\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    \n\t\t\t\t\t\t\t\t\tThe Indian automobile industry does not expect to have any significant impact from US President Donald Trump\u2019s reciprocal tariff announcement, as autos are not covered in it and exports to the US are limited, industry body SIAM said\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    List of reciprocal tariffs announced by Trump:<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    1. China: 34 per cent\u00a0<\/span><\/li>\n \t
    2. European Union: 20 per cent\u00a0<\/span><\/li>\n \t
    3. South Korea: 25 per cent\u00a0<\/span><\/li>\n \t
    4. India: 26 per cent\u00a0<\/span><\/li>\n \t
    5. Vietnam: 46 per cent\u00a0<\/span><\/li>\n \t
    6. Taiwan: 32 per cent\u00a0<\/span><\/li>\n \t
    7. Japan: 24 per cent\u00a0<\/span><\/li>\n \t
    8. Thailand: 36 per cent\u00a0<\/span><\/li>\n \t
    9. Switzerland: 31 per cent\u00a0<\/span><\/li>\n \t
    10. Indonesia: 32 per cent\u00a0<\/span><\/li>\n \t
    11. Malaysia: 24 per cent\u00a0<\/span><\/li>\n \t
    12. Cambodia: 49 per cent\u00a0<\/span><\/li>\n \t
    13. United Kingdom: 10 per cent\u00a0<\/span><\/li>\n \t
    14. South Africa: 30 per cent\u00a0<\/span><\/li>\n \t
    15. Brazil: 10 per cent\u00a0<\/span><\/li>\n \t
    16. Bangladesh: 37 per cent\u00a0<\/span><\/li>\n \t
    17. Singapore: 10 per cent\u00a0<\/span><\/li>\n \t
    18. Israel: 17 per cent\u00a0<\/span><\/li>\n \t
    19. Philippines: 17 per cent\u00a0<\/span><\/li>\n \t
    20. Chile: 10 per cent\u00a0<\/span><\/li>\n \t
    21. Australia: 10 per cent\u00a0<\/span><\/li>\n \t
    22. Pakistan: 29 per cent\u00a0<\/span><\/li>\n \t
    23. Turkey: 10 per cent\u00a0<\/span><\/li>\n \t
    24. Sri Lanka: 44 per cent\u00a0<\/span><\/li>\n \t
    25. Colombia: 10 per cent<\/span><\/li>\n<\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      Auto Industry Reactions \n\nSrikumar Krishnamurthy, Senior Vice President and Co-Group Head, Corporate Ratings, ICRA Ltd: <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      \u201cThe US Government has imposed a 25% tariff on passenger vehicles and light trucks. As the PV exports from India to the US represent less than 1% of the total PV exports, the imposition of the tariff does not have any material impact on the Automotive OEMs. The scenario is however different for auto components\u201d<\/p>

      \u201cAuto components have not featured in the latest set of additional tariff announcement. India\u2019s auto components exports accounted for 29% of industry revenues in FY2024. Of this, 27% was to the US. While the situation is evolving, the recent tariff related development and the consequent inflationary pressures and slowdown in demand in the US could have a negative impact on revenue and earnings for component exporters (in the affected product categories) over the next few months. Nevertheless, with higher tariffs being levied on other competing nations, this could also create long-term opportunities for the exporters. Exporters dependent on the US are also trying to diversify their revenue base across other geographies (including Asia). Measures to improve value addition, diversification into non-auto segments and cost-optimisation strategies are also being worked upon to reduce the potential impact on margins.\u201d<\/p>

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