Tariffs throw uncertainty into Ceat’s US plans

Mumbai, India – A planned reciprocal tariff on imports from Sri Lanka into the US has thrown uncertainty into Ceat’s plans to expand its presence in the country.

The US has imposed a 44% import duty on Sri Lankan products, though it is currently paused pending trade negotiations.

In a 30 April fourth-quarter earnings call, Ceat CEO and managing director Arnab Banerjee explained that through its recent acquisition of off-road tire and track manufacturer Camso, the company could be exposed to Sri Lanka-related trade tariffs.

Camso, he explained, exports 30% of its Sri Lanka-manufactured products to the US, split evenly between rubber tracks and tires.

As for tracks, Banerjee said the product has been “reindexed” to a 4% tariff, but the tires remain at risk of a 44% rate “as things stand.”

However, Banerjee added, local government officials and Michelin – which owns multiple businesses in Sri Lanka – are “working hard” on negotiations with Washington.

“We understand that things may resolve more favourably in the future,” the Ceat leader said.

As for the export of tires from India, Banerjee said the tariff rates against the country made it "slightly" more competitive than its main rivals in Thailand, Vietnam and China.

And if the auto component tariff of 25% applies uniformly, Ceat is "neither competitive nor uncompetitive."

The company chief went on to stress that the US remained “a key investment market, a key growth market for the future.”

“We believe these issues will sort themselves out. So, our investment plan for product development and launches in the US – across OHT, PLT, and truck/bus radials – will continue as usual,” he concluded.

Ceat announced in December that it was acquiring Camso from Michelin for €212 million. (ERJ report)

According to Banerjee, the group expects to begin consolidating Camso’s results into its financial performance from the second quarter of fiscal year 2026, which started 1 April.