US Reciprocal Tariffs Unlikely to Hit Indian Auto Sector, Says SIAM

The Indian automobile industry remains unaffected by the recent reciprocal tariff measures announced by the US. According to SIAM, autos are excluded from the new tariff list, and existing exports to the US are minimal.

The industry had already been dealing with earlier imposed Section 232 tariffs. As a result, no major disruptions are expected in the sector.

US Announces New Tariffs, But Autos Not Included

The United States has introduced fresh reciprocal tariffs on imports from around 60 countries, including India, as part of a broader effort to counter what it sees as unfair trade practices.

The move includes a 27% tariff on select Indian goods. However, Indian automakers can breathe a sigh of relief—automobiles are not on the list.

SIAM Reassures Minimal Impact

The Society of Indian Automobile Manufacturers (SIAM) responded to the announcement with confidence, stating that the Indian auto sector will likely not experience any notable impact.

“It is to be noted that automobiles are not covered in this order since they are already subject to Section 232 tariffs at 25 per cent, announced earlier in President Trump’s order on March 26, 2025,” said SIAM Director General, Rajesh Menon, in an official statement.

Limited Exposure to the US Market

A key reason for the industry’s low concern is the limited volume of automobile exports from India to the United States. With autos already subjected to earlier tariffs and the US not being a major export destination for Indian vehicles, the effects of the new tariff order are expected to be negligible.

Steel, Aluminium, and Auto Parts Also Exempt

Apart from finished vehicles, the latest order also excludes auto components, steel, and aluminium articles. These categories were already subject to existing Section 232 tariffs, further shielding the auto manufacturing ecosystem from additional cost pressures.

Conclusion

Despite heightened global trade tensions, the Indian auto industry appears insulated from the latest developments in US tariff policy. While vigilance remains essential, the current measures are unlikely to disrupt operations or export plans in the near term.

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