The Automotive Component Manufacturers Association of India (ACMA) has responded to the recent executive order signed by US President Donald Trump on April 2, 2025, under the “Liberation Day” initiative, which aims to bolster domestic manufacturing and address long-standing trade imbalances.
In a statement issued today, Shradha Suri Marwah, President of ACMA and Chairperson & Managing Director of Subros Ltd., acknowledged the intent behind the US administration’s move, while expressing hope that the evolving trade dialogue between India and the United States will lead to an equitable outcome for both economies.
The executive order follows an earlier announcement on March 26, 2025, where President Trump imposed Section 232 tariffs of 25% on autos and auto parts as well as steel and aluminium products. ACMA clarified that these categories, already covered under the March order, are not included in the April 2 directive. However, the specific list of auto components that may fall under the new 25% import tariff remains awaited, creating uncertainty for Indian exporters.
“We understand the intent of the US administration to boost domestic manufacturing and address trade imbalances,” said Marwah. “ACMA remains hopeful that the ongoing bilateral negotiations between the Indian and US governments will lead to a balanced resolution that benefits both economies. The strong trade relationship, especially in the auto components sector, encourages continued dialogue to mitigate the impact of these measures.”
As the apex body of the Indian auto component industry, ACMA represents over 1,000 manufacturers, who contribute more than 90% of the industry’s turnover in the organised sector. In FY2024, the Indian auto component industry reported a total turnover of USD 74.1 billion, with exports touching USD 21.2 billion and a trade surplus of USD 300 million.
The United States remains India’s largest export destination for auto components, with exports valued at USD 6.79 billion in FY2024, compared to USD 1.4 billion in imports. Any changes to the U.S. tariff regime are therefore likely to have a significant impact on Indian suppliers and OEM partnerships.
ACMA has reiterated its commitment to engaging with stakeholders and policymakers to safeguard the long-term interests of the Indian auto component sector, while remaining aligned with global trade standards and competitiveness.
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