Impact of Trump's Tariffs on Indian Tyre Industry: A Grim Outlook

The U.S.'s recent tariff hike on Indian tyres poses a substantial threat to the industry's export momentum, as per the Automotive Tyre Manufacturers' Association (ATMA). The tariffs, which are set at 50% for most categories, place India at a marked disadvantage compared to competing economies like China and Vietnam, which face much lower tariffs.

Indian tyre exports, which recently surpassed Rs 25,000 crore with the U.S. as the largest buyer, are in jeopardy of losing ground without policy intervention. ATMA Chairman Arun Mammen highlighted the crucial need for policy support to prevent India from losing its competitive edge in global markets.

The industry is also grappling with challenges from the domestic shortfall in natural rubber supply, leading to nearly 40% dependence on imports. ATMA seeks government support for duty-free imports to bridge the supply gap and improvements in RoDTEP benefits to bolster export competitiveness.

(With inputs from agencies.)