Congress MP Shashi Tharoor has expressed concerns over the impact of newly announced US tariffs on India’s automobile trade, particularly auto parts. Following President Donald Trump's decision to impose a 25% tariff on foreign-made automobiles and a 26% tariff on Indian imports, Tharoor highlighted the potential consequences for both Indian exporters and American manufacturers who rely on Indian components.

He emphasised that these tariffs could hurt American consumers and manufacturers while also negatively affecting India's auto parts industry, which has significant exports to the US.

Tharoor remains optimistic about upcoming trade negotiations, stating that there is time until September-October to reach a more favourable agreement. The tariffs are part of Trump’s broader "Fair and Reciprocal Plan," aimed at addressing trade imbalances and boosting US manufacturing. India’s auto component exports to the US, valued at $6.79 billion in FY24, are particularly vulnerable to these measures.

Trump justified the tariffs by citing high import duties imposed by India on US goods, including a 52% tariff on automobiles, while the US charges significantly lower rates in return. He argued that these disparities have harmed American industries and national security.

ANI