CEAT Warns of U.S. Tariff Blow To Auto Sector, Expects Easing Amid India-U.S. Trade Talks

CEAT CFO Kumar Subbiah discusses the impact of U.S. tariffs on the tyre sector. He clarifies that while the company’s exposure to the U.S. market is under 5%, it remains a significant growth opportunity. Subbiah explains that the U.S. government has introduced an incremental duty of about 25% on auto components, which includes CEAT’s passenger car, truck, and bus tyres. This was implemented around the first week of May, raising the total duty from approximately 5% to nearly 30%. In addition, a separate 10% duty has been imposed on non-auto components, such as certain off-highway tyres. Subbiah expresses hope that ongoing trade negotiations between India and the U.S. may result in a reduction of these tariffs. Listen in