On April 2, US nation husband Donald Trump has implemented 25 per cent auto tariff with reciperochl tariff. This tariff will apply to all the countries of the world. Which is also bound to affect India. Now the biggest question is how much this auto tariff will benefit America and how much loss to India. In a report, on behalf of Trump's colleague, it has been claimed that by imposing auto tariffs, America can benefit from $ 100 billion i.e. 8.6 lakh crore rupees every year. On the other hand, in another report, India can suffer a loss of $ 31 billion i.e. 2.65 lakh crore rupees from 25 percent tariff. In which the most impact can be seen on the auto sector. Let us try to understand in this report, after all, how can America benefit from auto tariffs and how India may have to suffer losses.
US President Donald Trump has announced a 25 percent tariff for the auto industry on Wednesday. Because of which there has been a stir in the global auto market. At the "Make America Wealth Again" program held at Rose Garden, Trump said that from midnight we will all impose 25 percent tariffs on foreign -made automobiles. He said that if the car is made in America, then you will get interest rate cut. This has never happened in America. Apart from this, the US President said that 10 percent base interest will also be added to all American imports, although it has not received much clarity. From April 3, America will impose 25 percent tariff on cars fully assembled from India. By May 3, a similar tariff was expected to be imposed on auto parts, which increased the concern in India's auto sector, which is one of the biggest exporters in the country to America.
Now the biggest question is that America is expected to benefit from this auto tariff. A few days ago, Trump's business and manufacturing advisor Peter Navarro claimed that the auto tariff could earn US $ 100 billion annually. Navaro had claimed that the Trump administration alone would raise around $ 100 billion with auto tariffs alone. According to CNN report that in its effort to increase the tariff, there has been a lot of focus on the auto industry for the Trump administration. Trump's colleague further said that the Trump administration is planning to give tax credit to the 'American' car buyers. However, he did not clarify which car would be eligible for credit.
Currently, no car manufactured in the US Auto Assembly plant is made only by American parts, and most are dependent on imports for more than half of their materials. With 25 percent tariff on all imported cars, President Trump announced his plan to impose additional tariffs on imported auto parts, which are used in every car manufactured in an assembly plant in the US. Navaro believes that these tariffs will force the automakers to transfer their production to the American plant, making more jobs in the United States.
On the other hand, India has been estimated to suffer a big loss from this tariff. MK's recent report states that if the tariff is fixed at 10 per cent, India may suffer a loss of up to $ 6 billion in US exports. If the tariff rate increases by 25 per cent, the loss may increase by $ 31 billion, with the most damage to the auto industry. The Central Government has collected data from the auto parts industry to assess the full impact of the tariff. The auto sector which exports about 6.79 billion values annually to the US is facing an important challenge. Industry's benefits in India have demanded more clarity on tariffs, especially which specific auto parts will be tariff.
