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Zero: Why India Is Having The Last Laugh On Donald Trump’s 25% Tariffs On Auto
Primus In News
Zero: Why India Is Having The Last Laugh On Donald Trump’s 25% Tariffs On Auto
27-03-2025

Nikhil Dhaka, Vice President, Primus Partners, shares his view on the potential impact of the US imposing a 25% import tariff on autos and components. He highlights a threefold impact, with immediate pressure on Indian auto component manufacturers, particularly those with high exposure to the US market. The tariffs could also intensify domestic competition within the US, negating India’s previous cost advantage of 6-7%. To mitigate these challenges, Dhaka suggests that Indian component manufacturers should shift focus toward advanced components such as precision-engineered systems, batteries, and sensors to maintain competitiveness.

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