According to industry estimates, India's auto component exports to the US were USD 6.79 billion in FY24, while the country's imports from the US stood at USD 1.4 billion at 15 per cent duty. Prior to Wednesday's announcement by Trump, the US charged almost 'nil' duty on imported components.

The implications of the US announcement to impose 25 per cent import duty on completely built vehicles and auto parts from April 3 remain limited for India's auto industry and may even present an opportunity for domestic exporters,

US President Trump’s announcement of a 25% tariff on vehicles and auto parts is expected to have minimal impact on India’s automobile sector, as exports to the US are relatively low, according to the Global Trade Research Initiative.