Which Indian Companies Will Be Hit by Donald Trump’s 25% Auto Tariff? Full Impact Explained

Donald Trump’s 25% Auto Tariff: President Donald Trump signed a proclamation to implement a 25% tariff on auto imports, expanding a trade war designed to bring more manufacturing jobs to the US and setting the stage for an even broader push on levies next week.

"Trump’s latest decision to impose a 25 % duty on all car imports to the US will impact Tata Motors which exports a significant chunk of JLR cars to the US," VK Vijayakumar, Chief Investment Strategist, Geojit Investments said, highlighting that the market have now turned cautious as the reciprocal tariff day approaches.

According to VK Vijayakumar, chief investment strategist at Geojit LInvestments, “Trump’s latest decision to impose a 25 percent duty on all car imports to the US will impact Tata Motors, which exports a significant chunk of JLR cars to the US."

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Similarly, analysts at ICICI Securities noted that North America (largely US) is a very important market for Tata Motors overseas luxury PV arm i.e. JLR. Itsvolume shares is pegged at 33 per cent (wholesales at 94,000 units amidst total wholesales of 290,000) and is the key growth region for the company amidst overall muted demand in other regions.

This is sentimentally negative for JLR and Tata Motors, however we expect the tariffs to be much lower than proposed and will largely be taken care of by the trade deal negotiations between the US and EU block.

Other key component makers with significant export exposure include Bharat Forge, Sansera Engineering Ltd, Suprajit Engineering, and Balkrishna Industries.

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In the financial year 2024, India exported auto components worth $21.2 billion, contributing to the global auto component market, which stands at $1.2 trillion.

Shipments to the US and Europe, the world’s biggest importers of auto parts, made up approximately 4.5 per cent of the total global trade.

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