Samvardhana Motherson Share Price Rises 6% as US Pauses Tariffs on Canada, Mexico

Samvardhana Motherson International Limited’s share price saw a notable rise of 6.53%, trading at ₹139.14 at 10:03 AM on the NSE. The stock opened at ₹137.51 and hit a high of ₹142.14, with a low of ₹137.15 during the session. This surge comes after the stock dropped more than 8% in yesterday’s trade, primarily due to tariff concerns. Today’s recovery highlights a shift in market sentiment.

US Delays Tariffs on Canada and Mexico

On Monday, the United States temporarily paused the planned 25% tariffs on goods from Mexico and Canada for 30 days. This decision follows discussions between the leaders of the three countries and agreements on enhancing security measures to address border control and drug trafficking concerns.

US President Donald Trump expressed satisfaction with the initial outcome, emphasizing the potential for a final economic deal with Canada. He stated, that the Tariffs announced on Saturday will be paused for 30 days to see whether or not a final Economic deal with Canada can be structured.

Impact on India’s Auto Component Exports

As per news reports, India exports auto parts worth approximately $21.2 billion annually, with around 3% of this value, or $656 million, going to Mexico. The key products exported include metallurgical items like forgings and casting materials.

Mexico plays a critical role in the production of vehicles sold in the US, with major manufacturers like General Motors, Toyota, and Volkswagen sourcing a significant portion of their vehicles from plants in Mexico and Canada.

Motherson’s Exposure to Mexico

As per news reports, Samvardhana Motherson International’s revenue is also impacted by Mexico, contributing to nearly 4% of the company’s overall income.

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