Who are the losers and gainers in India after Trump tariffs? Here are major sectors that are impacted by US move
President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, in Washington | AP
With US President Donald Trump imposing a 26 per cent tariff on Indian exports to the country, Sensex and Nifty crashed on Friday, reflecting a global sell-off.
The most impacted industries in India include electronics and smartphones, gold jewellery, fisheries, and textiles.
Pharma
The pharma sector is exempted from the tariff currently. However, Trump could levy a sectoral tariff on pharmaceuticals just like the automobile industry. Indian pharmaceuticals amount to 10 per cent of country's exports to the US. Major companies include Cipla, Sun Pharma, Dr Reddy's and Lupin.
IT sector
The IT sector will also be among the least affected sectors in India. Though the tariffs are not directly applied to service sectors like IT, they can be indirectly affected by the economic slowdown in the US.
Electronics
India has seen an increase in export of mobile phones after Apple started assembling iPhones in the country. Some of the components used to build iPhones are imported from China, South Korea and Taiwan, which are facing massive tariffs. However, rival assembly destinations like Thailand and Vietnam are facing higher tariffs than India, in effect making it a preferred iPhone assembly hub.
Fisheries
Indian fishery exports could be impacted by US tariffs despite exporters like China and Vietnam facing higher tariffs. This is because fish-exporting Ecuador has 17 per cent tariff less than India. Hence US importers would prefer lucrative fish from Ecuador to India.
Gold
The retaliatory tariffs will impact gold jewellery manufacturers as India's 23 per cent of the $3,200 crore exports in the sector are going to the US. The previous tariff was 7 per cent and if this is raised by 20 per cent more, it can have huge repercussions on Indian gold industry.
Textile
Trump's retaliatory tariffs are expected to be boon for the Indian textile industry as major exporters like China (44 per cent), Cambodia (59 per cent), Vietnam (56 per cent) and Bangladesh (37 per cent) are facing higher duties. India exports around $2,000 crore worth of textiles currently.
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