Sona BLW, other auto ancillary stocks skid up to 2% as Trump hints at higher US tariffs

Currently, U.S. auto tariffs stand at 25 percent, but Trump’s comments have sparked speculation that they could be raised further

Indian auto ancillary stocks came under heavy pressure on June 13 after U.S. President Donald Trump signalled the possibility of raising tariffs on imported vehicles. The move, aimed at boosting domestic manufacturing, has stoked fears of renewed trade tensions and potential ripple effects on global supply chains.

Shares of Sona BLW, Samvardhana Motherson, Bosch, and Uno Minda fell up to 2 percent in intraday trade, with investors bracing for a possible disruption in exports and rising input costs. Sona Blw was also in the news after Sunjay Kapur, the chairman of auto components firm Sona Comstar, passed away in London on Thursday due to a heart attack. He was 53.

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"I might go up with that tariff in the not-too-distant future. The higher you go, the more likely it is they build a plant here," Trump said, pointing to General Motors' $4 billion investment in U.S. plants as an example of how higher duties could incentivise local manufacturing.

Currently, U.S. auto tariffs stand at 25 percent, but Trump’s comments have sparked speculation that they could be raised further — a move that would complicate negotiations with key trading partners like Japan and Germany, and potentially impact India’s export-reliant auto component manufacturers.

The president’s latest statement comes shortly after he doubled steel and aluminium tariffs to 50 percent and ahead of a July 9 deadline by which higher auto duties may take effect.

With Indian auto ancillary companies closely tied to global OEMs, especially in the U.S. and Europe, prolonged uncertainty or an escalation in tariffs could dampen the earnings outlook.

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