Trump tariffs start to pinch Indian rubber exports; tyre companies look to expand export market

CHENNAI: The 26% import tariff imposed on Indian rubber goods entering the US market will put Indian exports at a disadvantage vis a vis nations like Vietnam and Turkey. Buyers in the US have already asked Indian exporters to stop production for the moment.

According to the All India Rubber Industries Association (AIRIA), the tariff differentials between India and these countries will squeeze Indian goods out of the US market.

Shashi Singh, president of AIRIA, said, “This puts us at a serious disadvantage, especially when compared to Turkey, which faces only a 10% tariff, and Vietnam, a 0% (nil) tariff offered by them to the US under its trade agreement with the US.”

These disparities are likely to result in the US market being increasingly dominated by cheaper imports from Turkey and Vietnam, severely undercutting Indian exporters, he said.

“Buyers in the US have already advised us to suspend production temporarily, as they aim to clear existing stock first so there will be fresh demand only once those inventories are exhausted but by then, the pricing gap could further strain our foothold in this critical market,” he added.

The rubber industry’s pain pinch may also have a domino effect on tyre exports given that natural rubber is the biggest component in tyre manufacturing. Already tyre exporters are looking to expand their export basket.

Arun Mammen, chairman of Automotive Tyre Manufacturers Association (ATMA), said, "The Indian tyre industry is closely monitoring developments related to the US tariff scenario. We believe in fair trade practices and a level playing field for all stakeholders and the Indian tyre Industry remains committed to diversifying its export destinations,” he said.

At 17% of the total tyre export pie, the US is the largest export market for Indian tyres followed by Germany at 6%, Brazil at 5% and UAE at 4%. “Tyre exports to the US have grown steadily over the years, driven by globally benchmarked manufacturing practices, a strong emphasis on quality, and adherence to regulatory standards,” said Mammen.

ATMA has urged policymakers to resolve any issues through dialogue and cooperation.


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