Trump tariffs: Indian auto components subject to 25% import tariff in US, sector awaits detailed list

The Automotive Component Manufacturers Association of India (ACMA) on Thursday said it is waiting for the detailed list of auto components that will be subject to 25 per cent import tariff in the US.

The industry body said that it has taken note of the recent executive order signed by the US President Donald Trump on April 2, as part of the “Liberation Day” initiative.

“We understand the intent of the US administration to boost domestic manufacturing and address trade imbalances. It is to be noted that autos and auto parts and steel and 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,” Shradha Suri Marwah, President, ACMA, said.

Suri, who is also the Chairman and Managing Director of Subros, said that 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,” she added.

“With US automotive tariffs rising, India’s electric vehicle sector has a prime opportunity to capture a larger share of the US market, especially in the budget car segment. China’s 2023 auto and component exports to the US stood at $17.99 billion, while India’s were only $2.1 billion in 2024, highlighting the potential for growth. To accelerate this, the government should enhance the PLI scheme by including more auto components, opening it to new players, and extending it by two years,” Saurabh Agarwal, Partner & Automotive Tax Leader EY India, said.