ACMA Hopeful Of Strong Trade-Related Relations Between India and USA

"The Automotive Component Manufacturers Association of India (ACMA) takes note of the recent executive order signed by U.S. President Donald Trump on April 2, 2025, as part of the "Liberation Day" initiative. We understand the intent of the U.S. administration to boost domestic manufacturing and address trade imbalances.

It is to be noted that autos & auto parts and steel & aluminium articles, already subject to Section 232 tariffs at 25%, announced earlier in President Trump's order on March 26, 2025, are not covered in the aforementioned order. The detailed list of auto components that will be subject to 25% import tariff in the US is however awaited.

ACMA remains hopeful that the ongoing bilateral negotiations between the Indian and U.S. governments will lead to a balanced resolution that benefits both economies. 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.", Shradha Suri Marwah, President ACMA and CMD Subros Ltd.

Even Congress MP Shashi Tharoor highlighted how the tariffs could affect the automobile sector, particularly the trade of automobile parts. Tharoor also expressed optimism that trade negotiations over the coming months can lead to a more favorable agreement.

Speaking to ANI, Tharoor said, "We are not selling many automobiles in America, but automobile parts are a major factor and that would be affected, and the first victims are going to be American manufacturers who would be buying Indian parts. So that's not very good for us, that's not very good for them, and that's not very good for the American consumers."
He added, "I hope that in the negotiations over the next nine months, we have time till September-October for a trade agreement, I hope that our negotiators will do a good job in trying to get something better than this."