US President Donald Trump’s threats of steep tariffs on Mexico and his planned curbs on immigration present a two-pronged threat to Indian auto parts suppliers and their ambitions to expand in their biggest export market.

According to sources familiar with the developments, the US has not raised any substantial trade issues directly with India in recent years.

India will continue to bring down tariffs and phase out additional levies on imports as domestic manufacturing improves, a top finance ministry official said, ahead of Prime Minister Narendra Modi’s visit to the US.

There are gains and losses for India from Trump Tariffs on China, Mexico and Canada. Biggest risk for India market remains continued dollar strength.

India will continue to bring down tariffs and phase out additional levies on imports as domestic manufacturing improves, a top finance ministry official said, ahead of Prime Minister Narendra Modi’s visit to the US.

India is reviewing tariffs on over 30 key imports, including significant cuts on solar cells, household goods, and luxury cars. The peak import tariff has been reduced from 150% to 70%, potentially benefiting US exports and signaling a shift in trade dynamics.