As the auto industry braces for the tariff imposed by US President Donald Trump, the Automotive Component Manufacturers Association of India (ACMA) on Thursday expressed hope that ongoing trade talks will lessen the impact on both economies.
ACMA president Shradha Suri Marwah noted that auto parts, steel, and aluminum, already subject to existing tariffs, are not included in this new round of tariffs announced as part of the ‘Liberation Day’ initiative. They remain subject to the previously imposed Section 232 tariffs. These previous tariffs were imposed at a rate of 25 per cent on March 26, 2025.
“ACMA remains hopeful that the ongoing bilateral negotiations between the Indian and US governments will lead to a balanced resolution that benefits both economies,” Marwah said.
Efforts to mitigate the impact
The association believes that continued dialogue will be encouraged by the existing strong trade relationship between the two countries, particularly within the auto components sector. This dialogue is seen as key to mitigating the impact of the new tariffs. The association acknowledged the US administration’s goal of bolstering domestic manufacturing and addressing trade imbalances.
The US is the largest market for India’s auto component exports, with the country exporting auto parts worth $6.79 billion in
The industry body has also expressed its commitment to working with stakeholders to protect the Indian auto component industry’s long-term interests. The association’s president confirmed existing tariffs on certain goods remain in place, while the specific auto components affected by the new tariffs are yet to be officially listed.
