New Delhi, July 31 -- India's $111 billion auto components industry faces a fresh threat after US President Donald Trump announced a 25% tariff on Indian goods, denting the sector's edge in its largest export market.

The latest levy, revealed on Wednesday evening, slightly moderates the 26% rate proposed in Trump's April Liberation Day speech. But even at 25%, it places India at a disadvantage compared to other Asian exporters-Japan faces a 15% tariff, Vietnam 20%, and Indonesia 19%.

More worryingly for India, North American peers Mexico and Canada remain exempt under the US-Mexico-Canada Agreement (USMCA), which offers zero-tariff access to the US market for automotive components, provided they meet local content requirements.

The mov...