ACMA stresses industry resilience as US tariff hike casts uncertainty on auto component trade

The Automotive Component Manufacturers Association of India (ACMA) has expressed concern over the United States’ latest decision to hike tariffs on select imports from India, including automobile components. The move, expected to pose short-term challenges for exporters, is being viewed by the Indian auto parts industry as a cue to ramp up competitiveness and deepen value chains.

ACMA President Shradha Suri Marwah acknowledged the potential setback but said the development highlights the urgency for Indian manufacturers to innovate, diversify their export markets and enhance domestic value addition. She reiterated ACMA’s belief that the strong bilateral trade ties between India and the US would help pave the way for a solution through constructive dialogue.

The US currently accounts for more than a quarter of India’s auto components exports and remains a key trade partner for the sector. While the tariff increase may dampen immediate trade prospects, the industry body said it remains focused on strengthening India’s position in global supply chains through sustained policy support and collaboration with stakeholders.

This comes on the heels of a major announcement by former US President Donald Trump, who declared a 100% tariff on semiconductor and chip imports during a meeting with Apple CEO Tim Cook. The move is widely seen as a push to drive tech manufacturing back to the US and reduce reliance on overseas supply chains—a strategy sharpened by the global chip shortages during the pandemic.

As global trade dynamics shift, ACMA sees this moment as both a challenge and an inflection point for India’s auto component sector to build long-term resilience and reduce dependency on any single market.