US President Donald Trump announced an additional 25% tariff on a wide range of Indian goods, including auto components. Previously, the United States has been imposing a 25% duty on cars, small trucks, and their parts from all countries since May 3. A move expected to affect nearly half of India’s US$7 billion annual exports of such products to the US.

Industry executives warned the increase would heavily impact India’s auto sector, as the US is its largest market, accounting for about 32% of total shipments in the fiscal year of 2025. Trump stated that the higher tariffs are intended to encourage companies to manufacture within the US, boosting domestic production and job creation.