CNH CEO Predicts Temporary Nature of Trump’s 50% Tariff on India

The Chief Executive Officer of CNH Industrial, Gerrit Marx, stated on Tuesday that the 50% tariff on Indian products imposed by the administration of U.S. President Donald Trump is expected to be temporary. Marx expressed optimism that the tariff would be significantly reduced once the two countries finalize a trade agreement. His comments came during a visit to the company’s manufacturing plant in Greater Noida, India.

Marx remarked, “The 50% tariff is not going to stay. If it stays, we are going to live in a different world.” He noted that shipments of CNH products to the United States from India have been paused due to the tariff’s implementation. CNH exports New Holland tractors and CASE construction equipment from its Indian manufacturing facilities, which are located in Greater Noida, Pune, and Pithampur, Madhya Pradesh.

Impact on Exports and Production Goals

According to Narinder Mittal, President and Managing Director of CNH India, the company exported approximately 14,000 tractors in 2024, with around 30% of those shipments going to the United States. The remainder was directed to markets in Europe and Africa. In total, CNH produced 51,000 tractors in India during the same year, with 37,000 sold locally.

Marx, who assumed the role of CEO in July 2024, emphasized CNH’s commitment to India, aiming to increase its market share in the Indian tractor segment to double digits over the next five to six years. Currently, the New Holland brand holds around 4-5% of the Indian tractor market, which is predominantly controlled by competitors such as Mahindra, TAFE Limited, Sonalika, and Escorts Kubota. Annual tractor sales in India reach approximately 900,000 units.

Future Investments and Strategic Changes

During his visit, Marx announced plans for a new manufacturing unit in India to further enhance production capabilities. The company is currently in the process of acquiring land for this facility, although specific details regarding investment and timeline will be revealed later.

One of Marx’s first major decisions as CEO was to designate India as a standalone region within CNH’s global operations. Previously, India was classified as part of the Asia-Pacific region. “India is not an appendage of Asia Pacific. It is a region in itself. We compete here as an Indian player and we are investing here for the long term,” he stated.

Regarding the impact of the U.S. tariffs on CNH’s expansion plans in India, Marx expressed caution about moving production due to uncertainties surrounding tariffs. “I am very hesitant right now to move production from one place to another because of tariffs that we didn’t know eight months ago and maybe they will look different eight months from now,” he concluded.