Bharat Forge shares are likely to be in focus on Tuesday after U.S. officials announced that President Donald Trump’s administration would move to reduce the impact of proposed automotive tariffs. The move aims to ease duties on foreign parts used in domestically manufactured cars and prevent compounded tariffs on imported vehicles.
“President Trump is building an important partnership with both domestic automakers and American workers,” said U.S. Commerce Secretary Howard Lutnick in a statement from the White House.
“This deal is a major victory for the President’s trade policy by rewarding companies that manufacture domestically while providing runway to manufacturers who have expressed their commitment to invest in America and expand domestic manufacturing.”
The announcement follows a plea from several U.S. auto industry groups last week, urging the administration not to proceed with the planned 25% tariffs on imported auto parts. They warned that such a move would increase vehicle prices, reduce sales, and disrupt servicing and repairs.
Trump had earlier stated that he planned to impose the 25% tariffs on auto parts no later than May 3.
“Tariffs on auto parts will scramble the global automotive supply chain and set off a domino effect that will lead to higher auto prices for consumers, lower sales at dealerships, and make servicing and repairing vehicles both more expensive and less predictable,” the industry groups said in the letter.
The letter, sent to U.S. Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent, and Commerce Secretary Howard Lutnick, represented companies including General Motors, Toyota Motor, Volkswagen, Hyundai, and others.
“Most auto suppliers are not capitalized for an abrupt, tariff-induced disruption. Many are already in distress and will face production stoppages, layoffs, and bankruptcy,” the letter added, noting, “it only takes the failure of one supplier to lead to a shutdown of an automaker’s production line.”
According to Trendlyne data, the average target price for Bharat Forge shares is Rs 1,202, indicating an upside of 8% from current market levels. The consensus recommendation from 26 analysts is a ‘Hold’.
