US President Donald Trump has once again exploded a big bomb. During an event at the Oval office, he announced that all foreign cars would now be charged 25% for imports in the United States. The biggest thing is that the US president has made it clear in his statement that this is not a temporary decision but permanent. This decision in the United States will also affect many famous Indian companies in the automobile industry. This includes Tata motors for Eicher Motors.
Recovery will start from April 3
President Trump has announced that it will impose a 25 per cent more cost for auto imports, and that the US will effectively impose these fees for all the cars that are not manufactured in the country. However, if you build your car in the United States, no fee will be used for it. The new fee is due to be implemented from April 2, and its recovery will start from the next day, ie from April 3. According to experts, US customers may face inflation through this phase. At the same time, Trump’s decision will affect the shares of companies associated with the Indian automobile sector.
Indian exports will be affected
Significantly, a variety of vehicles are exported from India to the United States. Automobiles, trucks and motorcycles are exported from India to the United States. These include vehicles from Tata Motors to Eicher Motors. By 2023, India exported $ 37.14 million worth of motor vehicles to the United States. India has so far charged more than 100 per cent for vehicles from abroad. At the same time, Donald Trump has mentioned it several times. If we talk about cars to be exported from India to the United States, most of them are sedan and Hachback.
Fear of increasing trade war in the automotive sector
India is also among the largest exports countries to the United States based on automotive components. Many products, including engine parts, transmission components and electrical systems, are shipped from the country to the United States. The US imports about $ 300 billion vehicle components from countries around the world, including India. Donald Trump, who announced a 25 percent fee, said the policy would promote domestic production. The announcement of President Trump is a threat to increase trade tension with major motor vehicle manufacturing countries, including Europe, Japan and South Korea.
Tata’s big business in the United States
Tata Motors has a global automobile company and a large business in the United States. He is there by the Jaguar Land Rover (JLR). Tata Motors acquired the Jaguar Land Rover (JLR) from Ford in 2008, which is now an important part of Tata Motors and operates in the United States. In addition, TVS Motors has taken several steps to expand in Latin America, including the onset of new motorcycles. Apart from this, the company’s motorcycle Royal Enfield is a huge demand with Eyesher Motors heavy vehicle.
These stocks will be affected
The impact of Trump’s important decision can be found in the stocks of these companies by opening a business on the stock market on Thursday. Let us know that Tata Motors fell to Rs 707.40 on Wednesday. In addition, the shares of Eiser Motors fell by 0.61% to Rs 5,398. Talking about sharing TVS motors, it was close to Rs.2424.
(Note- Make sure you access your market experts before any investment on the stock market.)
