KOCHI: The Trump effect seems to be affecting the Indian tire industry. India’s imports of Chinese tires are expected to surge at the same time after US President Donald Trump threatened to impose tariffs on them.

Natural rubber prices have risen again, in line with global market trends and the Trump effect. Tire prices are expected to rise by 7% to Rs 160 per kg this week, which could force the domestic tire industry to increase tire prices.

Apart from about 10% of natural rubber, the raw material component of tires also accounts for 40% of the Prices. Some tire companies have already increased tire prices by 2-5%.

“Since natural rubber and all the chemicals used in tires are becoming more and more expensive, we have no choice but to increase the prices slightly.” said Vikram Malhotra, Director, Marketing, JK Tires. Volume increases.

“Currently, imported Chinese tires account for more than 30% of the replacement market for truck lunch tires in India. If the US imposes tariffs on Chinese tires, the volume of tires pouring into India may further increase to meet our counter demand.-tires. “Dumping duties on Chinese tires.”

However, some tire dealers argue that when natural rubber prices went up, tire makers did not cut prices. Interestingly, in 2010-11, when natural rubber prices rose to Rs 240 per kg and crude oil prices touched $115 per barrel, tire makers hiked prices by 22 to 30 percent. But a year ago, when natural rubber prices touched Rs 90 per kg and crude oil prices fell to $37 per barrel, the price cut was only 2-3.5%. Says SP Singh, president, All India Tyre Dealers Federation. /P The tire industry has been demanding an increase in import duty on finished rubber products, including tires, and wants the government to implement such an increase in the latest Union budget.

“The tire industry is looking forward to correcting the reverse tariff on natural rubber. Correction of reverse tariff on rubber is very important to improve the competitiveness of the tire industry. Currently, the import tariff on natural rubber is 25 percent and reverse tariff on rubber is 25 percent.” KM Mammen, president of the Automotive Tire Manufacturers Association, said that with a 25% duty on rubber, the import tariff on tires is only about 3 cents.

Meanwhile, brokers said that natural rubber will continue to trade at around Rs 160 kilogram per kilogram despite Friday’s adjustment that reduced rubber prices to Rs 159 kilogram per kilogram.