Washington
Business relations between the US and India are once again seen moving towards tension. US President and current Republican candidate Donald Trump has announced an additional 25% tariff on imported goods from India, which will be in addition to the already applicable 25% duty. With this decision, the total import duty rate on India on India will reach 50%, which is directly going to shock the automobile and auto component industry.
Auto sector on the most target
The biggest impact of this policy will be seen on India’s auto parts exports. The US is a large market for Indian auto components and goods worth about $ 7 billion (about ₹ 61,000 crore) are sent there annually. But due to this sudden increase in tariffs, this business can be about half.
Trump’s resentment over the purchase of oil from Russia
Trump took this decision at a time when India is buying crude oil from Russia at affordable rates. Trump has called the move “against American interests” and in response to that the tariff rates have doubled. This gives clear indications that if India does not change its strategy, then even more rigorous trading steps can be taken in the future.
New rates will be applicable from August 27
The impact of the new fee will start appearing from 27 August 2025. From this day, 50% import duty will be implemented on auto parts and other affected products to be exported from India from India. This policy is being implemented in a phased manner, but is going to have immediate effect on India’s business. According to experts, if this situation persists, then India’s business deficit in the auto sector with the US may increase considerably. This will not only affect the earnings of companies, but can also affect employment opportunities, especially in units which are dependent on export to the US.
