US tariffs raise concerns across India's automotive and component sectors

Tariff hike to 50% may hit Indian exports of tyres and auto components to the US; industry explores nearshoring, diversification, and cost efficiency measures

The White House’s decision to impose an additional 25 per cent tariff on Indian imports — raising total duties to 50 per cent — has sparked concern across India’s automotive and component sectors.

 

With the US accounting for 27 per cent of India’s auto component exports and 17 per cent of tyre exports, analysts warn the hike could sharply dent India’s price competitiveness, particularly in off-highway components and the replacement tyre segment, compared to Asian peers like Vietnam and Indonesia, who enjoy lower or preferential trade duties.

 

The broader sector is under pressure. Saurabh Agarwal, partner and automotive tax leader