Auto shares typicallly these with publicity in the US markets might be in focus in Thursday’s commerce (March 27, 2025) after US President Donald Trump has imposed 25 per cent tariff on auto imports. As per the newest tariff measure, Trump has introduced a 25 per cent tariff on imported vehicles and gentle vehicles, efficient April 2. In line with CNN (hyperlink), the tariff applies to automobiles and parts from all international locations, with a brief exemption for components from Canada and Mexico below the USMCA.
The choice is for all vehicles in addition to small vehicles that are imported into the US. As well as, the tariff might be levied on auto parts too.
Shares of Tata Motors will see traction as the corporate’s US subsidiary Jaguar Land Rover has US as its main market.
Different shares that can acquire focus are Samvardhana Motherson and Sona BLW Precision.
Within the earlier session, in a weak market, Tata Motors shares ended a tad decrease at Rs 707.95 per share.
Macquarie believes 25% auto tariff is integral
In 2024, 40 per cent of latest automobiles bought in the US have been imported. A 25 per cent tariff on imported automobiles is unrealistic and onerous to US shoppers, famous Macquarie.
We nonetheless count on the Trump administration to make use of this as a leverage, forcing automakers to decide to greater US localisation. Automakers with native capability addition dedication needs to be exempted from this tariff or related measure to be introduced, it added.
Preliminary share worth response needs to be detrimental, believes Macquarie.
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