US tariffs on auto parts: India's $7bn export at risk
Starting this month, the US has raised tariffs on Indian auto parts—25% for car components and 50% for commercial vehicle and heavy machinery parts.
Nearly half of India's $7 billion annual auto parts exports to the US are now affected, putting a big chunk of business at risk.
SMEs expect tighter profit margins, possible client losses
Small and medium enterprises (SMEs), which make up most of India's auto parts sector, are feeling the pinch.
With US buyers pushing them to cover these extra costs, many SMEs like Noble Cast Comp and R K Industries expect tighter profit margins and even possible client losses.
Indian suppliers at a disadvantage
These higher tariffs put Indian suppliers at a disadvantage compared to competitors in Japan, Vietnam, and Indonesia—where US duties are much lower (15-19%).
As a result, American buyers might start shifting orders away from India toward these cheaper options.