Trump's new tariff hike; A major setback for the Indian auto manufacturing sector

 

 

US President Donald Trump's latest move to double the duty on Indian exports to 50 percent has raised concerns in key export sectors, including the country's auto sector. The new tariff hike comes after Trump's earlier warning against continuing oil imports from Russia.

The other day, Trump signed an executive order imposing an additional 25 percent duty on Indian products. The tariffs have been implemented in phases as per this policy. Since then, these tariffs will affect many industries in India, the most important of which is the automobile sector. Trump's 50 percent tariff policy will have a major impact on India's auto component exports. Experts have warned that US President Donald Trump's decision to raise the duty on auto parts from India will severely affect the country's export industry. Senior industry experts who spoke to the Economic Times said that about half of India's auto parts exports to the US worth $7 billion could be affected.

This decision could halve India's auto parts exports to the US. Currently, India exports about $7 billion (about Rs 61,000 crore) worth of auto parts to the US annually. But due to the huge increase in tariff rates, this trade could fall sharply.

It is noteworthy that the US is the largest importer of auto parts from India. The US's share in total auto parts exports is 32 percent. That is, the US is India's largest customer. For this reason, the US tariff will directly affect India's export business and employment.