India, April 10 -- On April 2nd, the U.S. officially implemented reciprocal tariffs, though not extended to the automotive industry in general. According to TrendForce's latest research, the US has applied a 25% surcharge to imported passenger cars and light trucks as planned. A similar 25% tariff on auto parts is set to take effect by May 3rd.

Vehicles and components that comply with USMCA will only be taxed on the portion not classified as "U.S. content" for 25%. The specifics of how this will be reviewed and enforced are pending formal procedures from the U.S. Department of Commerce and Customs. Overall, whether for vehicles or parts, the presence of U.S. content is at the heart of this tariff dispute.

TrendForce notes that automaker...