Recipient rates: No new shocks for Indian steel, aluminum and car manufacturers | Mint

Mumbai: Indian steel and car businesses will not face extra trade barriers over and above the previously announced import duties of 25%, according to a fact-home factor shortly after US President Donald Trump announced reciprocal rates of 26% on Indian goods on Wednesday. Steel and aluminum items, and cars and auto parts that Trump had announced earlier 25% tariffs, will be exempt from Wednesday’s reciprocal rates, the White House said. However, the existing concern remains. While India’s car exports are negligible to the US, the country is an important destination of Indian manufactured auto parts. It is estimated that India will export about $ 6.8 billion to auto parts to North America, according to the Automotive Component Manufacturers Association of India (ACMA). Most of these shippers go to the US. The 25% levy on auto parts that kicks in from May 3 could be a damper for Indian exporters. However, since the tariff is uniform in countries, the trade is unlikely to move from India to elsewhere. Trading relations in the automotive industry also tend to be tough. It is not easy for a car manufacturer to switch spare parts to short notice, given the complexity of their supply chains and the time it takes to ratify and bring new suppliers. A greater concern for the Indian industry is that larger suppliers of auto parts such as China can move their exports elsewhere from the US, also to India, which could possibly eat in the domestic parts suppliers. Similarly, the import of steel and aluminum to the US is also negligible, but the concerns about China that redirect its excess production to India have worried the industry. Meanwhile, US car manufacturers are an edge on a release of rates for key parts such as engines, Bloomberg reports. Elon Musk, head of Tesla, a strong ally of US President Trump, said earlier on X that the rates would have a significant impact on his electric car business as it buys parts of overseas. Catch all the industry news, bank news and updates on live currency. Download the Mint News app to get daily market updates. Business NewSindustrialReciprocal Tarifts: No new shocks for Indian steel, aluminum and car manufacturers