Tata Motors in 2025: What Investors Should Watch Closely

Since US President Donald Trump took office for the second time, when and what announcement will he make? What kind of impact will it have on the stock market and whether to continue investing or not? Many questions have been coming from investors. In particular, Trump has been imposing heavy taxes on various countries. 

This has caused great dissatisfaction among the countries of the world. Although many countries have joined hands with Trump to maintain their economic growth, some countries are raising the flag of war against the United States. This has increased trade tensions internationally.

New trade agreement?

Trump, who has signed a new trade agreement with Japan, has announced that taxes on goods imported from that country will be reduced to 15%. It was previously set at 25%, but now it has been decided to reduce it to 10%. This tax reduction is expected to come into effect from August 1.

Like Japan, the European Union may soon join hands with the United States. Agreements on tax reduction are expected to be signed. The European Union is expected to impose a 15% tax, similar to the one imposed on Japan. It is said that the European Union may also accept the US conditions to avoid the 30% tax imposed from August 1.

Will the tax on vehicle imports be reduced?!

As mentioned above, if the European Union joins hands with the US, European countries could become the largest export market for the US. In particular, the huge 27.5% tax on cars is likely to be reduced to 15%.

Already, in the midst of the US-UK trade agreement, the US has reduced the tax to 10%. This tax rate applies especially to cars and auto parts imported from Japan. If the tax is further reduced in the EU, it will further improve vehicle imports, but the big question is whether it will be beneficial to India.

Tata Motors

According to the US-UK trade agreement, the tax on automobile exports has already been reduced to 10%. This is seen as a positive for Tata Motors. However, premium carmaker Jaguar Land Rover has a large manufacturing plant in Slovakia. Vehicles including the Land Rover Discovery are manufactured in this plant.

Since Slovakia is a country in the European Union, the tax can be reduced to 15% there too, which can also be a positive for Tata Motors. It is noteworthy that 33% of Jaguar and Rover's total sales come from the US. Therefore, the benefit of the tax reduction will definitely help improve Tata Motors' earnings. This can have a positive impact on the share price in the long term.