Sunday, June 22, 2025

Indian auto industry sees limited impact from US tariffs, gems & jewellery sector raises concerns

Date:

The Indian automobile industry does not anticipate a significant impact from US President Donald Trump’s reciprocal tariff announcement, as automobiles are not included in the order. Additionally, India’s auto exports to the US remain limited, according to the Society of Indian Automobile Manufacturers (SIAM).”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,” SIAM Director General Rajesh Menon said in a statement.”We don’t expect any significant impact on the Indian automobile industry since there are limited exports to the US, but we will continue to monitor the situation,” he added.The Automotive Component Manufacturers Association of India (ACMA) expressed optimism that ongoing bilateral trade talks between India and the US will help mitigate the impact of Trump’s tariff orders, leading to a balanced resolution that benefits both economies.Also Read: US recession likely after Trump’s liberation day tariffs: ExpertsACMA President and Subros Ltd CMD Shradha Suri Marwah confirmed that autos, auto parts, and steel and aluminium articles—already subject to Section 232 tariffs—are not covered in the latest order.”The detailed list of auto components that will be subject to a 25% import tariff in the US is, however, awaited,” she said. Marwah acknowledged the US administration’s intent to boost domestic manufacturing and address trade imbalances.”ACMA remains hopeful that the ongoing bilateral negotiations between the Indian and US governments will lead to a balanced resolution that benefits both economies,” she said.”We believe that the strong trade relationship between India and the United States, especially in the auto components sector, will encourage continued dialogue to mitigate the impacts of these measures. ACMA is committed to engaging with all stakeholders to ensure the long-term interests of the Indian auto component industry,” Marwah added.Gems & Jewellery Industry Faces SetbackThe US retaliatory tariffs pose a major challenge for India’s gems and jewellery exports, according to the Gem and Jewellery Export Promotion Council (GJEPC), which urged the Indian government to take steps to protect the sector’s long-term interests.Also Read: Billionaire investor Ray Dalio feels Trump tariffs were inevitable”The Trump administration’s announcement of a 27% reciprocal tariff on India would be a significant burden on Indian exporters and American consumers alike,” GJEPC said in a statement.”In the long-term, we foresee a reshaping of global supply chains. In the short run, we anticipate challenges in sustaining India’s current export volume of $10 billion to the US market,” it added. GJEPC called for progress on a bilateral trade agreement between India and the US to navigate the tariff issues.Trade Bodies Assess Impact on IndiaIndustry experts believe the real impact of the tariff announcement will only become clear after a thorough assessment.”Tariffs unveiled by President Trump last night would bring a major realignment in global trade and manufacturing value chains. India has been placed somewhere in the middle of the tariff rates at 27% in addition to 10% baseline duties, which needs to be assessed for real impact,” said ASSOCHAM President Sanjay Nayar.”Net-net, it appears India’s export competitiveness to the US market stands far less impacted on a relative basis. Yet our industry should make concerted efforts to increase export efficiency and value addition, to mitigate the impact of these tariffs,” he added.PHDCCI President Hemant Jain echoed a similar sentiment, stating that India’s industrial competitiveness will help balance the impact of US tariffs. “India’s robust industrial competitiveness will balance the impact of US tariffs, and GDP will see only a 0.1 per cent impact in the short term. However, in the medium term, as the policy takes full effect, this shortfall will be negated,” Jain said.Pharma Industry Welcomes Tariff ExemptionNamit Joshi, Chairman of Pharmexcil, welcomed the exemption of Indian pharmaceuticals from US reciprocal tariffs, reaffirming the industry’s commitment to ensuring an uninterrupted supply of quality and affordable medicines.”We express our profound gratitude to the Government of India for successfully negotiating this exemption. This vital decision secures the uninterrupted flow of essential and affordable medicines to Americans, reinforcing India’s unwavering commitment to quality and reliable supply,” he said.Also Read: ‘What do the penguins sell to USA’: Donald Trump’s reciprocal tariffs spark meme festJoshi added that the Indian pharmaceutical industry remains dedicated to strengthening the India-US healthcare partnership, ensuring continued access to life-saving treatments, and fostering collaborative solutions for evolving healthcare needs.Minimal Impact on Apparel ExportsThe Apparel Export Promotion Council (AEPC) stated that the tariff differential between India and the US on apparel and textile exports stands at only 7%, minimizing the potential impact on Indian exports.AEPC noted that India will not be the only country facing such tariffs, as key textile-exporting competitors, including China, Bangladesh, and Vietnam, will also be subject to similar duties.

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

spot_imgspot_img

Popular

More like this
Related

Air India reroutes flights to bypass sensitive West Asia airspace amid rising tensions in the Gulf

In response to growing instability in West Asia where...

Iran Israel war: PM Modi speaks with Iranian President Pezeshkian, calls for de-escalation

Prime Minister Narendra Modi on Sunday (June 22) conveyed...

Israel says the remains of 3 hostages have been recovered from Gaza

The Israeli military says it has recovered the remains...

Surging travel in Europe spikes concerns over tourism’s drawbacks

Suitcases rattle against cobblestones. Selfie-snappers jostle for the same...