US President Donald Trump has recently announced a 25% tariff on imported cars and auto parts, with the intention of promoting local automotive production. This decision has the potential to cause disruptions in global supply chains, which could have a significant impact on India’s auto parts sector. Indian companies that are major suppliers to the US may now need to diversify their markets to offset any decrease in demand from the US. Concurrently, negotiations for a bilateral trade agreement between the US and India are in progress, which could potentially affect the future trade dynamics between the two countries. The Indian automotive industry will need to closely monitor these developments and strategize accordingly to navigate the changing landscape of international trade.