Indian Auto Parts: Thriving Amidst the Tariff Tempest

Indian auto component manufacturers with Canadian and Mexican facilities face minimal impact from President Trump's tariffs due to USMCA exemptions. Despite US-Mexico-Canada agreement shielding compliant goods, some Indian companies could still be affected due to global tariff changes, with potential opportunities in the US electric vehicle sector.

Indian auto component manufacturers with operations in Canada and Mexico will largely escape the brunt of President Donald Trump's latest tariff measures, as these nations are exempt from new additional duties.

In a move reinforced by the International Emergency Economic Powers Act related to fentanyl and migration, the White House announced on Wednesday that new tariffs won't target Canada and Mexico. As a result, goods compliant with the US-Mexico-Canada Agreement (USMCA) from these countries will incur no tariffs, while non-compliant goods could face a 25 percent duty.

Companies like Samvardhana Motherson International Ltd, which rely significantly on USMCA-compliant production, assured stakeholders of minimal financial impact. Yet, the tariffs opening doors for India in the US electric vehicle market suggests a strategic opportunity for growth in green technology sectors.

(With inputs from agencies.)