India safe in Donald Trump’s tariff game! Nomura said no difference

The US government led by Donald Trump is pressurizing India to remove the tariffs on the cars to be imported. However, brokerage firms like Nomura say that even if India does this, it will not have any major impact.

The Government of India is ready to cut the tariff further, but at the moment there is no plan to eliminate it completely. According to a report by Reuters, the Government of India is hesitating to make the tariff completely zero. The issue will be discussed during the formal conversation of the Bellator Trade Deal between the two countries, which can clear the way for Tesla’s entry into India. The average veg in India is $ 1.5 per hour, while in Mexico it is $ 2.5 and is $ 15 in the US. The salary of shop floor workers in the US is 5 times higher than India.

Indian suppliers have made a strong hold in products like EV Differentials, Bevel Gears and Crankshafts. However, due to the integrated supply chain of global OEMS, India’s stock is still about 2 per cent. What will be the effect.

The risk is also low. High tariffs imposed on countries like Mexico, Canada and China can benefit Indian exporters. But the interesting thing is that the average price of cars in the US is 447K (about 4.1 million rupees), which is much higher than the 11K (about 9.49 lakh rupees) of FY25 in India. According to Nomura, the Government of India can offer less duty for cars made in the US under a strategy, provided that they do not take advantage of the system by importing cars or components from countries like Mexico or China. That is, this benefit should be only for cars that have a value edition of up to 90 % in the US.