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Washington: As if to prove the saying that the clouds do not rain, Trump has really rained thunder and is now raining with full force. He has imposed 25 percent tax on imported auto goods from the United States since April 2. It is estimated that Trump will benefit from $ 100 billion from these tariffs, but the move both Canada and the European Union have disturbed.
Trump claims that his steps would return out of the US to produce production and auto companies would be forced to open new factories at the domestic level. This will create more employment. But the reality is completely opposite to Trump’s claim.
The Pietersen Institute for International Economics senior Fellow Mary Lovely, while systematically denied Trump’s claims, said that Trump’s actions would not only create new jobs in the US, but will also end existing jobs. This will increase the average cost of purchasing cars for Americans. It will be extremely difficult for American car manufacturers to raise sources globally. They have to pay taxes on imported auto parts, making it expensive for Americans to buy cars. Today, an average car in the US costs $ 49,000. Under these circumstances, Americans will have to depend more and more on their old vehicles.
American companies, who first benefit from the era of globalization and economic liberalization, have set up production plants worldwide as part of their global supply chain, and cannot be closed overnight. These companies will not take any step that disrupted their global supply chain. Regardless of how much Trump is, American auto companies cannot turn overnight from global companies to local companies. Trump now wants to run America according to the old laws of economic protectionism, which is no longer possible in the era of globalization. In addition, inflation in the US will continue to increase due to such actions of Trump. The decision of General Motors and Ford has declined due to Trump’s decision.
Canadian Prime Minister Mark Carney said that Trump’s move is a direct attack on Canada. Trump does not even know that the trade war he launched is becoming the most troublesome for American citizens. We will protect our workers, our companies and our economic interests against Trump’s actions. Carney had earlier announced that he would create a $ 1.4 billion strategic response to the auto sector in Canada as a result of Trump’s actions. There are five lakh people working in the auto sector in Canada. He said that the American Consumer Index, which is at a lower level of many years, shows that Trump’s actions have adversely affected.
The European Union President Ursula Dere Von Der Leyen also condemned Trump’s works. He said that the European Union would review Trump’s action and then decide whether any retaliation should be taken. European companies are still able to deal with recession and competition from China. Trump’s move has now shocked him even more deep. Germany and Italy have had a particularly bad effect.
India’s US $ 7 billion auto parts exports in danger
– India ranked 11th among countries supplying auto parts to America: Mexico and Canada share 80 percent
Mumbai: US President Donald Trump has announced 25% tariffs on all cars, auto components and light commercial vehicles imported in the US from abroad. Its impact on Indian auto manufacturers will not be significant, but it can give a big blow to India’s auto parts exports. This has put India’s export of seven billion dollars in danger. Trump’s move has threatened the export of $ seven billion to Indian auto and auto spare parts companies. The US contributes 20 percent or $ 350 billion to the total global imports of automobiles, car parts and light commercial vehicles. India was ranked 11th among the countries supplying auto parts to the US in 2023.
US President Donald Trump has announced a 25 percent tariff on imported cars from abroad. This tariff will be applicable from April 2. Trump’s decision is likely to affect companies like Tata Motors, Eicher Motors, Sona BLW and Madrasan in India.
However, according to experts, Trump’s decision to impose 25 percent tariffs on foreign cars is likely to cause more damage to auto parts manufacturers than Indian auto companies. India exported auto components worth a total of $ 21.2 billion in FY 2024, out of which 4.5 percent were exported to the US and Europe. Meanwhile, the total sales of auto components globally were $ 1.2 million. Among India’s leading auto parts companies, companies such as Promotion Madrasan and Sona BLW have a strong network in Europe and America. The mother’s mother -in -law exports auto parts to Tesla and Ford.
Now, if the Government of India cannot save India’s auto industry from Trump’s mutual tariff, it has come to lock many units exporting auto parts directly. This may directly affect employment. Therefore, the industry is urging the government to make a trade agreement with the US as soon as possible to avoid adverse effects on employment from mutual tariffs.
Canada and Mexico have described Trump’s decision to put 25 percent tariff on automobiles as a direct attack. Sources said that more than 80 percent of the total auto exports of Mexico and Canada goes to the US and 21 percent of the European Union auto exports. Korea and Japan are also among the US exporters of top auto and auto Palparjon. Korea’s dependence on the American auto market is 44 percent and Japan has 34 percent.