HS Code:
Torque converters, classified under HS Code 8483.40, are critical components in automatic transmission systems, primarily used in vehicles to transfer rotating power from the engine to the transmission. They allow for smooth power delivery by multiplying torque when there is a substantial difference between input and output speeds. This category includes torque converters for passenger cars, commercial vehicles, and industrial machinery. Global trade in torque converters is driven by the automotive industry's demand, particularly in regions with significant vehicle manufacturing and aftermarket repair sectors.
Total Trade Volume
USD 5.2 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
5.2%
Highest Rate
12% (applied by certain developing countries)
Lowest Rate
0% (under free trade agreements like USMCA and EU-Japan EPA)
Rising demand for automatic transmission vehicles
Increased production and trade of torque converters, especially in emerging markets like India and Southeast Asia
2022
Shift towards electric vehicles (EVs)
Potential long-term decline in demand for torque converters as EVs typically do not require traditional transmissions
2023
Technological advancements in torque converter efficiency
Growing trade in high-efficiency and lightweight torque converters to meet fuel economy standards
2021
The United States-Mexico-Canada Agreement has reduced tariffs on automotive components, including torque converters, boosting trade among member countries.
July 2020
Increased export volumes from Mexico to the US and Canada, with a reported 10% growth in trade value.
The EU introduced CBAM, which may impose additional costs on high-carbon footprint torque converter imports starting in 2026.
October 2023
Potential cost increases for Asian exporters unless they adopt greener manufacturing processes.
Global semiconductor shortages and logistics challenges have impacted the automotive sector, indirectly affecting torque converter production and trade.
Mid-2021 to 2022
Temporary reduction in trade volumes by 5-7% in key markets like the US and Europe.