The additional 25% tariff imposed by the Trump administration on Indian exports to the US came into effect on August 27, effectively doubling the overall levy to 50%.Global brokerage firm Morgan Stanley, in a note on the auto sector, said it is reassessing the tariff exposure of Indian companies.
The US accounted for 38% of Bharat Forge’s standalone revenue and around 10% of Balkrishna Industries’ FY25 topline.
During the June quarter, both companies were already facing a 10% tariff on most of their product exports. At that time, they managed to partially pass on the impact to customers.However, the sharp escalation now means 30% of Bharat Forge’s standalone revenue and 10% of Balkrishna Industries’ revenue will be subjected to a steep 50% tariff.
Morgan Stanley estimated that the additional duties could translate into an EBITDA hit of nearly 30% for Bharat Forge and around 10% for Balkrishna Industries.
On Thursday, shares of Bharat Forge ended 0.23% higher at ₹1,124.50, while Balkrishna Industries closed 0.16% lower at ₹2,320.40.
