US Tariffs Won’t Impact India’s Passenger Vehicle Exports, Says ICRA

The latest US Tariff announced by the Trump administration on March 26, 2025 won’t have any material impact on India’s passenger vehicle exports due to meagre volumes of such shipments, says ICRA. As part of reciprocal tariffs on about 60 countries to counter higher duties on American products imposed globally, US President Donald Trump announced 27% reciprocal tariffs on India, saying New Delhi imposes high import duties on American goods.

The automobile sector is not covered in this order since it is already subject to Section 232 tariffs, says ICRA. The increased tariffs will apply on all passenger vehicles (sedans, sports utility vehicles, crossover utility vehicles, mini vans and cargo vans) and light trucks imported into the US.

As the passenger vehicle exports from India to the US represents less than 1% of the overall PV exports, the tariff imposition does not have any material impact on the automotive original equipment makers, said Srikumar Krishnamurthy, Sr. Vice President and co-group head for corporate ratings at ICRA Limited.