Aside from imposing a 25% tariff on Indian imports, the US President warned of harsher action for countries that continue to buy oil from Russia. Here’s a look at the sectors and stocks that may be the worst hit by the US tariffs.
The jump in tariff from zero to 25% on the drugs exported to the US may be a big blow for stocks like Sun Pharmaceutical, Lupin, and Dr Reddy’s Laboratories. Indian pharma majors rely on the US market for more than half of their overall exports.Chemicals (including pharmaceuticals) is the only space where Indian exporters still have an edge over China. In the ongoing trade war, the Donald Trump administration has imposed a 30% tariff on China (which expires on Aug 12), compared to 25% on India and Singapore.
The three countries are the biggest exporters of chemicals to the US.
The US is India’s top export destination – accounts for 17.7% share of total exports as of the financial year ended March 2024. Indian exporters of shrimps, gems and jewellery, and electronics may be among the worst hit sectors as the US’ 25% tariff takes effect starting August 1.
The three countries are the biggest exporters of chemicals to the US.
The US is India’s top export destination – accounts for 17.7% share of total exports as of the financial year ended March 2024. Indian exporters of shrimps, gems and jewellery, and electronics may be among the worst hit sectors as the US’ 25% tariff takes effect starting August 1.
| Category | Export value in FY24 | Share of India’s exports to the US |
| Electronics | $11.1 billion | 14.3% |
| Gems and jewellery | $9.9 billion | 12.8% |
| Pharma products | $8.1 billion | 10.4% |
| Nuclear reactors and machinery | $6.2 billion | 8% |
| Refined petroleum products | $5.8 billion | 7.5% |
In FY24, the US accounted for about 30% of India’s total gems and jewellery exports. Watch out for stocks like Rajesh Exports, Titan, Kalyan Jewellers and their peers.
Diamonds, cut and polished, accounted for $5.6 billion, more than half of all gems and jewellery exports to the US in FY24. There was no tariff on these products sold to the US so far.
The increase in tariff from Aug 1 would 19 percentage points in the case of gold and silver jewellery (plain or studded).
Over 41% of India’s shrimp exports, worth over $2.7 billion, went to the US in FY24. Avanti Feeds and Apex Frozen Foods will be two important stocks to watch in this space. Currently, Indian shrimp exports to the US face an effective customs duty of 17.7%, including 5.7% in countervailing duties and 1.8% in anti-dumping duty. That would now rise to 25%.
The case for textile exporters like Welspun Living, Arvind Limited, and Alok Industries is a bit more complex. Exporters of cotton textile and apparel will see the sharpest spike in tariffs from Aug 1. Those who ship carpets and knitted apparel and fabrics would be hit the least because they already face tariffs between 15% and 20%. In some cases, the existing tariff is already in excess of 20%
“Even if it’s 26%, we are still better off than Bangladesh at 35% and China at 30%,” said Sudhir Sekhri, Chairman of the Apparel Export Promotion Council told CNBC-TV18 on July 28. “Vietnam has 20% plus another 20% if it’s transshipment. Indonesia at 19% is the closest competition.”
| Trading partner | US tariffs on April 2 | Tariff post negotiation |
| European Union | 20% | 15% |
| Japan | 24% | 15% |
| Vietnam | 46% | 20% |
| Indonesia | 32% | 19% |
| Philippines | 17% | 19% |
This is a developing story and will be updated.
(Edited by : Sriram Iyer)
First Published: Jul 30, 2025 6:54 PM IS
