import duty

The Indian auto industry is cautiously responding to the FTA with the UK, anticipating reduced import duties. While component manufacturers are optimistic about increased exports, car companies are wary of potential tariff replications and the risk of Chinese parts being diverted through the UK.

Following the government's decision to reduce import duties to 75%, both Scotch and Indian-made blended whisky are set to become more affordable. This move is expected to significantly benefit Indian blenders and multinational companies, potentially leading to increased premiumisation within the Indian alcoholic beverage sector.

India and the UK have finalized a significant free trade agreement. The agreement ensures duty-free access to UK markets for 99% of Indian exports. India will reduce import duties on 90% of tariff lines, benefiting consumers with lower prices on various goods.

US President Trump is poised to alleviate automotive tariff burdens, a move applauded by GM and Ford CEOs. The decision, expected during Trump's Michigan visit, aims to support domestic carmakers by eliminating overlapping import duties on parts and refunding already paid levies. Automakers will be reimbursed up to 3.75% of a car’s value initially, phased out over two years.

The Indian government is considering offering duty-free access to specific US automobiles, including bikes with large engines, contingent on securing a favorable bilateral trade agreement. This potential concession, possibly with quotas, aims to address US pressure to lower tariffs on automobiles, whiskey, and farm products.

China says it is open to restarting trade talks with the United States, but made it clear that dialogue can only move forward if Washington cancels its steep unilateral tariffs. In a statement from the commerce ministry, Beijing insisted that words alone were not enough. China also noted multiple informal outreach attempts from the US, but said any genuine negotiations must be backed by action, not pressure or double-speak.

Stellantis is set to introduce Leapmotor EVs to India, expanding its electric vehicle offerings in the rapidly growing market. Leapmotor, Stellantis' joint venture partner, has seen significant global sales growth. The company may leverage its local manufacturing to assemble Leapmotor EVs, potentially offering competitive pricing in the price-sensitive Indian market.

Amazon anticipates minimal impact from US tariffs on Chinese goods. Andy Jassy believes the e-commerce platform's structure may favor Chinese sellers. He notes that US retailers face higher costs compared to those selling directly from China. Amazon's diverse marketplace allows sellers to absorb tariff costs, potentially increasing market share. The company is also encouraging sellers to bear the increased costs.

The Trump administration ended duty-free access for low-value shipments from China and Hong Kong, effective May 2, 2025. This closes a loophole used by e-commerce giants and illicit goods traffickers, potentially raising prices for American consumers. The move mirrors India's 2020 crackdown on Chinese 'gift' imports evading taxes.

VinFast, Tesla's rival, is shifting its focus to Asian markets, planning assembly plants in India by June and Indonesia by October, due to challenges in the U.S. market. While VinFast expands in Asia, Tesla is hesitant about entering India due to high import duties.

Mexico has responded to the US administration's threat to restrict livestock imports due to a dispute over screwworm fly control. US Agriculture Secretary warned of import restrictions if Mexico doesn't improve its efforts by Wednesday. The US alleges that Mexico is limiting sterile fly release operations and imposing duties on necessary aviation parts.

Reliance Jio is strategically densifying its 5G network across India by deploying domestically manufactured network products, potentially slashing costs and reducing reliance on Ericsson and Nokia. This move involves utilizing 5G small cells produced near Chennai through a joint venture, enhancing coverage in urban areas. Jio's shift aims for self-reliance and optimized capital expenditure in its 5G expansion.

The Golf GTi is powered by a 2.0-litre, four-cylinder turbo-petrol engine which puts out 265 hp of power and 370Nm torque. It comes paired with a 7-speed dual-clutch automatic gearbox, which sends power to the front wheels only. VW claims the sporty hatchback can sprint from 0-100kph in 5.9 seconds and has a top speed of 250 kph.

The Gujarat High Court upheld the dismissal of nine railway police constables who were assigned to patrol the Sabarmati Express on February 27, 2002. They returned to Ahmedabad early on another train, and later that day, the Sabarmati Express was torched near Godhra, killing 59. The court dismissed their reinstatement pleas, citing dereliction of duty and false entries in records.

India and the UK have finalized a Free Trade Agreement, poised to boost economic growth and trade relations. The agreement eliminates tariffs on approximately 99% of traded goods, benefiting sectors like manufacturing, textiles, and automotive. It also includes provisions for professional visas and reduced duties on products like Scotch whisky and cars, fostering job creation and deeper collaboration.

New US tariffs are expected to significantly impact India's automotive component sector, potentially reducing operating profits by 10-15%. ICRA forecasts a moderation in revenue growth for FY2026 due to anticipated decline in US exports. Despite these challenges, India aims to leverage its cost competitiveness and is seeking relaxed export controls and enhanced tech access from the US.

Pakistan seeks a $1.4 billion increase in its currency swap line with China. Finance Minister Aurangzeb confirms the request. Pakistan plans to launch its first Panda bond by year-end. This comes amid heightened tensions with India after the Pahalgam attack. Trade between India and Pakistan has significantly decreased. Indirect trade continues via third countries.

The Indian government's decision to close the Attari border will halt passenger travel and trade via the land route. In 2022-23, over 70,000 passengers and nearly 7,000 consignments worth Rs 3,900 crore passed through the border. This move signals India's stance that normalization requires Pakistan to cease sponsoring terrorism, impacting Pakistani access to Indian goods.

The M9 will be offered in both 7- and 8-seater configurations and gets features such as two sunroofs—a single-pane design for the front and a dual-pane unit for the rear—along with powered front and rear seats offering heating, ventilation, massage functions, and fold-out ottoman support. Additional highlights include powered rear-sliding doors and rear entertainment screens.

Elon Musk-led Tesla views India as a promising market but is concerned about the 100% tariffs on imported automobiles, which create customer anxiety. Despite securing showroom locations and advertising job positions, the company is carefully evaluating the timing of its entry.

Tesla is in discussions with Micron and CG Semi to diversify its semiconductor supply chain, reducing reliance on China amidst geopolitical tensions and rising costs. These partnerships align with Tesla's broader strategy of engaging with Indian manufacturers.

Despite US tariff exemptions on some tech, Chinese-made gaming consoles like the upcoming Nintendo Switch 2 may face hefty import duties. A key Apple and Nintendo supplier indicates a potential 145% US tariff under Trump's trade policy. Other Chinese products, including smart speakers and TVs, also face steep tariffs, impacting the gaming and electronics industries.

Indonesia has agreed to increase its imports of US energy products, including LPG, crude oil, and gasoline, as part of a deal to alleviate tariffs threatened by Washington. The two countries aim to finalize negotiations within 60 days, with Indonesia also pledging to ease permits and incentives for American companies operating within its borders.

Amidst escalating trade tensions with the US, fueled by Trump's tariffs, China is seeking new markets, particularly India. Despite past border clashes and investment restrictions, Chinese companies are now showing flexibility, accepting minority stakes and technology transfers to access India's growing market and potentially bypass US tariffs through Indian manufacturing.

Chinese EV maker Xpeng is eyeing the Indian market, acknowledging its potential and unique challenges. While a formal entry isn't imminent, the company is closely monitoring the evolving EV ecosystem. Xpeng believes its AI-powered EVs, like the X9 MPV, could offer competitive pricing and advanced technology, including ADAS, even with import duties, though adaptation is required.