Trump's tariff bomb explodes on Tata-Mahindra and Royal Enfield!
US President donald trump has announced reciprocal tariff on foreign-made automobiles i.e. cars and bikes. In such a situation, the big question is how will this tariff plan of trump affect the auto sector of india and the world?
This tariff plan of donald trump will affect the auto sector of Japan, Korea and germany the most. We are saying this because companies like Toyota, Mercedes, BMW, hyundai and volkswagen export their vehicles to America. Now let's talk about whether this will affect indian companies as well?
How much will it affect indian auto companies?
indian companies like Tata Motors, mahindra and Eicher Motors may be affected by this tariff. Actually, Jaguar land rover owned by Tata Motors and Royal Enfield bikes manufactured by Eicher Motors are in great demand in America. However, Jaguar land rover sold in America is either manufactured in the UK or these cars are made in Europe.
Supply stopped in America for now
As of now, Jaguar land rover (JLR) has stopped the supply of Jaguar and land rover cars made in britain to America for now. According to Bloomberg's report, from Monday, JLR is temporarily stopping the shipment of cars to America, so that it can find a way to deal with the new import tax. In such a situation, nothing can be said about the impact on Tata Motors at this time.
Talking about mahindra, this company also sells its vehicles in some parts of America. Due to this tariff, the sales of the companies may decrease due to the cost of vehicles exported from india to America. Experts say that this tariff will also affect the component manufacturing companies because indian auto component companies export auto parts to America.
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