{"id":16442,"date":"2025-09-05T13:32:22","date_gmt":"2025-09-05T08:02:22","guid":{"rendered":"https:\/\/www.tyremarket.com\/tyremantra\/?p=16442"},"modified":"2025-11-28T15:17:48","modified_gmt":"2025-11-28T09:47:48","slug":"us-tariffs_-tyre-industry-seek-policy-support-boost-exports","status":"publish","type":"post","link":"https:\/\/www.tyremarket.com\/tyremantra\/us-tariffs_-tyre-industry-seek-policy-support-boost-exports\/","title":{"rendered":"US tariffs_ Tyre industry seek policy support to boost exports"},"content":{"rendered":"<p>On August 27, 2025, the Automotive Tyre Manufacturers\u2019 Association (ATMA) raised the alarm: the US had slapped a 50% tariff on most <strong>tyre imports<\/strong>, and 25% on certain categories. It\u2019s more than just numbers, it\u2019s our most reliable export market suddenly shut tight.<\/p>\n<p>Let\u2019s pause and feel that: factories humming, workers clocking in, communities growing, and just when the engine feels traction, this curve appears.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>Understanding the Real Pain Behind the Numbers<\/strong><\/h2>\n<p>Numbers tell one story, but people live another. Here&#8217;s how it shakes out:<\/p>\n<ul>\n<li>The US is India\u2019s top tyre export destination, accounting for a significant 17% of global <strong>tyre shipments from India<\/strong>.<\/li>\n<li>In FY24-25, India exported tyres worth over \u20b925,000 crore, with more than \u20b94,300 crore landing in American soil.<\/li>\n<li>Indian manufacturers invested a whopping \u20b928,000 crore in expanding capacity, greenfield, brownfield, hoping to tap growing global demand.<\/li>\n<\/ul>\n<p>ATMA\u2019s trepidation is completely human: \u201cWe\u2019ve built this. We\u2019ve made this happen. Please don\u2019t let it slip away,\u201d says every line of their plea.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>What\u2019s Being Asked, and Why It Matters<\/strong><\/h2>\n<p>ATMA isn\u2019t begging, it&#8217;s making precise, reasonable requests grounded in survival and fairness:<\/p>\n<h4><strong>1. Boosting Export Incentives (RoDTEP)<\/strong><\/h4>\n<p>Currently, <strong>tyre exporters<\/strong> get just 1.3% benefit under RoDTEP and 0.8% under Advance Authorisation. Under the older MEIS scheme, they used to enjoy 3%, and right now, that\u2019s not enough to bridge the cost chasm.<\/p>\n<p>The ask? Raise RoDTEP to 4%, and extend it universally, including under Advance Authorisation. Because sometimes, you need that extra speed to climb back up.<\/p>\n<h4><strong>2. Raise the Duty Drawback Rate<\/strong><\/h4>\n<p><strong>Raw materials<\/strong> (like synthetic rubbers and chemicals) used in tyre-making attract 7.5% to 20% duties, but the current duty drawback stands at just 3.6%. ATMA says: \u201cMake it 10%, so we can stay price-competitive\u201d<\/p>\n<h4><strong>3. Duty-Free Natural Rubber<\/strong><\/h4>\n<p>India must import nearly 40% of its natural rubber due to <strong>domestic supply shortages<\/strong>. During cotton shortages, the government allowed duty-free cotton imports. ATMA asks for the same for natural rubber to plug the supply gap.<\/p>\n<h4><strong>4. Support for R&amp;D and Advanced Manufacturing<\/strong><\/h4>\n<p>This isn\u2019t just about short-term relief. India\u2019s tyre industry wants to evolve, to innovate. They\u2019ve asked for stronger incentives for R&amp;D and adoption of advanced manufacturing technologies.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>It&#8217;s Not Just About Tyres, It\u2019s About People and Economy<\/strong><\/h2>\n<p>Let&#8217;s zoom out a little.<\/p>\n<p>This tariff isn\u2019t limited to tyres. It\u2019s a sweeping blow hitting labour-intensive sectors, textiles, gems, footwear, leather, all critical livelihoods. Soon after, <a href=\"https:\/\/www.tyremarket.com\/TyreManufacturer\"><strong>Tyre makers<\/strong><\/a>, along with other exporters, realized the challenge:<\/p>\n<ul>\n<li>India\u2019s government is now drafting four relief schemes for exporters (like financial assistance, export promotion, and MSME aid) to cushion the 50% tariff blow, and Cabinet discussion is imminent.<\/li>\n<\/ul>\n<p>This isn\u2019t cold economics. It&#8217;s empathy:<\/p>\n<ul>\n<li>Jobs hang on this, in factories, trucks, workshops, markets.<\/li>\n<li>Investments could stall, new hires, expansion, innovation might slow.<\/li>\n<li>The emotive thread, India\u2019s burgeoning industrial identity, it all feels at risk.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.tyremarket.com\/TyreManufacturer\"><strong>Tyre factories<\/strong><\/a> don\u2019t just make products, they sustain families, communities, and dreams. A tariff might feel like a political move to trade sprawl, but on the ground, it reverberates through streets, meadows, homes.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>Can We Find a Way Forward?<\/strong><\/h2>\n<p>Yes, and here&#8217;s how, with optimism and determination, India could smoothen the road ahead:<\/p>\n<h4><strong>1. Fast-track Incentives<\/strong><\/h4>\n<p>Increasing RoDTEP to 4% and raising drawback rates can immediately rebuild competitiveness. Right now, it\u2019s not extra, it\u2019s essential.<\/p>\n<h4><strong>2. Power the Raw Material Lifeline<\/strong><\/h4>\n<p>Allow duty-free natural rubber, so production remains viable and margins don\u2019t crash.<\/p>\n<h4><strong>3. Quick-Start Alternatives<\/strong><\/h4>\n<p>Promote exports to other regions, LATAM, Africa, the EU. The government can support trade missions, e-commerce cards, logistics help, branding, and compliance via the Export Promotion Mission (EPM).<\/p>\n<h4><strong>4. Strategic Dialogue<\/strong><\/h4>\n<p>The USA might be stiff, but dialogue can soften. Meanwhile, diversifying trade partnerships strengthens resilience.<\/p>\n<h4><strong>5. Innovate with Heart<\/strong><\/h4>\n<p>Invest in R&amp;D, sustainable materials, and next-gen manufacturing, even now, future-proofing matters.<\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Final Thoughts<\/strong><\/h3>\n<p>Picture a <strong>tyre rolling smoothly<\/strong> on a winding road. It\u2019s not just rubber and metal, it\u2019s trust, craft, persistence. Now, suddenly, there\u2019s a pothole, a jarring blow. The path becomes rough.<\/p>\n<p>But this is India we\u2019re talking about. Innovation meets empathy. Grit meets wisdom. <strong>Policymakers and businesses<\/strong> can act with urgency. With the right support, the tyre industry, like that rolling tyre, can regain its momentum and roll towards brighter horizons.<\/p>\n<p>Let\u2019s root for pragmatism, for thinking fast and acting with heart. Because behind every policy and press release, real lives, hopes, and futures hang. And that, keep that in mind, is what matters the most.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On August 27, 2025, the Automotive Tyre Manufacturers\u2019 Association (ATMA) raised the alarm: the US had slapped a 50% tariff on most tyre imports, and&#8230;<\/p>\n","protected":false},"author":9,"featured_media":16443,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[4],"tags":[6262,2070,6261,6260],"class_list":["post-16442","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-export-boost","tag-indian-tyre-industry","tag-tyre-exports","tag-us-tariffs"],"_links":{"self":[{"href":"https:\/\/www.tyremarket.com\/tyremantra\/wp-json\/wp\/v2\/posts\/16442","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tyremarket.com\/tyremantra\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tyremarket.com\/tyremantra\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tyremarket.com\/tyremantra\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tyremarket.com\/tyremantra\/wp-json\/wp\/v2\/comments?post=16442"}],"version-history":[{"count":3,"href":"https:\/\/www.tyremarket.com\/tyremantra\/wp-json\/wp\/v2\/posts\/16442\/revisions"}],"predecessor-version":[{"id":16449,"href":"https:\/\/www.tyremarket.com\/tyremantra\/wp-json\/wp\/v2\/posts\/16442\/revisions\/16449"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tyremarket.com\/tyremantra\/wp-json\/wp\/v2\/media\/16443"}],"wp:attachment":[{"href":"https:\/\/www.tyremarket.com\/tyremantra\/wp-json\/wp\/v2\/media?parent=16442"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tyremarket.com\/tyremantra\/wp-json\/wp\/v2\/categories?post=16442"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tyremarket.com\/tyremantra\/wp-json\/wp\/v2\/tags?post=16442"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}