The latest tariff measures announced by US President Donald Trump are expected to significantly impact multiple Indian export sectors. According to Anurag Sehgal, Managing Director at PwC, the newly imposed tariffs will affect sectors such as electronics, smartphones, fisheries, gems and jewellery, auto components, and textiles.Sehgal highlighted that businesses in these sectors will focus on two key aspects: government-to-government (G2G) trade negotiations and internal strategies to stay competitive. Companies will need to explore product diversification and cost efficiency to navigate the shifting trade landscape.
The shrimp export sector is particularly affected, with a 27% tariff now imposed on frozen shrimp. Sehgal pointed out that businesses in this sector will look toward a bilateral trade agreement (BTA) with the US to mitigate tariff effects and ease non-tariff barriers through mutual recognition agreements.Also Read | Tariff changes could open new opportunities for Indian textiles: Arvind’s Kulin LalbhaiSehgal also noted that India’s electronics and smartphone sectors could still maintain a competitive edge despite the tariffs. While Indian smartphone exports to the US will now face a 27% tariff, Chinese smartphone exports will be subjected to a combined 54% tariff, including previous increases.The rationale behind the US administration’s tariff policy is twofold – reducing trade deficits and boosting domestic manufacturing.
However, Sehgal argued that imposing the same 27% tariff on both electronic components and finished smartphones does not provide significant incentives for US-based manufacturing, as reshoring production remains a long-term challenge. Instead, US businesses may advocate for strengthened trade ties with India, viewing it as a stable and reliable supply chain partner.Also Read | Neelkanth Mishra sees potential 1.6% hit to global GDP from tariff disruptionDespite the broad impact of these tariffs, India has secured exemptions for two of its top five export categories – pharmaceuticals and petroleum products.Sehgal pointed out that this exemption covers nearly 20% of India’s trade with the US, reducing the immediate impact compared to other nations facing tariffs across their entire export basket. However, negotiations remain crucial for the remaining 80% of India’s exports.Also Read | Kotak’s Nilesh Shah: ‘We have firepower, but we are not here to offer easy exit to FPIs’Agneshwar Sen, Trade Policy Leader at EY India, emphasised that India must closely monitor US tax and trade policies to assess whether the US aims to shift supply chains globally or genuinely reshore manufacturing. He also suggested that Indian firms explore partnerships with US-based manufacturers to capitalise on emerging opportunities in sectors beyond traditional exports.For the full interview, watch the accompanying videoCatch all the latest updates from the stock market hereCatch all the latest updates from Trump Tariffs here
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