UK auto industry pushes for low import tariffs in India amidst trading stress – CNBC TV18

The UK automotive industry is calling for low import tariffs in India as trade tension increases globally. To attract 70% of the duties in India with fully manufactured cars, Mike Hess, president of the UK Motor Trade Association, has emphasized the need for a balanced trade deal that benefits both countries. “We want to see that he wants to come down,” he said in an interview with CNBC-TV18, “The issue is being discussed with the UK government.”

The urgency for the Indo-UK Free Trade Agreement (FTA) has increased amid the latest round of global trade disputes. The manufacturers are expected to be greatly impressed by the impact of 25% tariffs on vehicle exports in the US. “This is a huge cost you cannot absorb as a manufacturer,” Hayes said. “It is inflation and also suppresses the demand.” The UK government is being urged to interact on a deal that can reduce the effect of these tariffs.

The impact on UK luxury car manufacturers is uncertain. Brands such as Jaguar Land Rover, Rolls-Royce, Bentley, McLaren and Eston Martin, who mainly sell high-pure people in the US, can still see demand, but buyers can delay shopping in the hope of future tariff cuts. It creates the minimum-and-medium-term production uncertainties, Hes said.

Concerns about possible job loss in the UK Auto sector are also increasing. Although it is too early to provide accurate estimates, low production can affect employment, especially for temporary workers who serve as a buffer during the ups and downs in demand. “The system always has some flakes. It will push the flax to the maximum,” Hayes said, saying that the manufacturers will focus on maintaining skilled employees despite economic stress.

Beyond the UK, the broad global economy faces the risk of recession due to tariff controversies. According to Hes, 10% of the wide tariffs being planted worldwide can have far -reaching consequences, affecting the supply chain and consumer demand. Additionally, China has retaliated against American tariffs by imposing 34% levy on US imports, indicating an increase in trade conflicts that can disrupt many industries, including a motor vehicle.

Hayes said that no country is immune for these changes. “The brief answer is that everyone is affected. America is a huge market,” he said, stating that the tariffs directly targeted by tariff will also feel the spillover effect. Many vehicle manufacturers have sought to reduce risks by setting up manufacturing plants in major markets like Korea, but the business flow disruption may still have unexpected results, he said.