Tata Motors Shares Take a Hit

Shares of Tata Motors Ltd witnessed a sharp decline of nearly 10% following an announcement by its luxury subsidiary, Jaguar Land Rover (JLR), to suspend exports to the United States. This decision comes in the wake of new auto tariffs imposed by US President Donald Trump.

Impact of Trump's Executive Order

On April 2, President Trump signed an executive order introducing a 25% tariff on all foreign-made vehicles entering the US. The tariffs are effective immediately for fully assembled vehicles, with auto components to be included starting May 3.

India's Auto Industry and JLR's Exposure

While India's auto exports to the US are minimal, accounting for just $8.9 million in 2024, the tariffs pose a significant challenge for Tata Motors due to JLR's substantial exposure to the US market.