Trump tariffs: As the global automotive and auto component industry stares at an uncertain future with the 25% tariff levied by the Trump administration, the domestic auto component manufacturers association (ACMA) is hoping that the ongoing bilateral negotiations between India and the US will lead to a balanced resolution, which will benefit both economies.
“The Automotive Component Manufacturers Association of India (ACMA) takes note of the recent executive order signed by US President Donald Trump on April 2, 2025, as part of the ‘Liberation Day’ initiative. We understand the intent of the US administration to boost domestic manufacturing and address trade imbalances,” says Shradha Suri Marwah, President ACMA and CMD Subros Ltd.
“It is to be noted that autos & auto parts and steel & 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 25 per cent import tariff in the US is, however, awaited,” she adds.
“ACMA remains hopeful that the ongoing bilateral negotiations between the Indian and US governments will lead to a balanced resolution that benefits both economies. We believe that the strong trade relationship between India and the United States, especially in the auto components sector, will encourage continued dialogue to mitigate the impacts of these measures. ACMA is committed to engaging with all stakeholders to ensure the long-term interests of the Indian auto component industry,” per Marwah.
The 25 per cent tariff by automobile manufacturers will come into effect beginning April 3. The 25 per cent tariff on auto component manufacturers will come into effect after a month.
In FY24, the exports from domestic auto component manufacturers to the US stood at approximately $6.79 billion. Amongst auto component manufacturers, Samvardhana Motherson, Sona Comstar, and Bharat Forge have significant export volumes to the US.
