In a major escalation of trade tensions, US President Donald Trump on April 2 announced a 26% reciprocal tariff on imports from India, citing high tariffs imposed by India on American goods. The move is part of a broader global trade overhaul unveiled at Trump’s “Make America Wealthy Again” Rose Garden event. This 26% tariff is expected to disrupt several sectors of Indian industry, especially companies with heavy export reliance on the US market.
According to an Emkay Global report dated March 25, a 25% tariff could impact India’s GDP by nearly $31 billion — about 0.72% of the projected $4.3 trillion GDP for 2025. The 26% tariff, now confirmed, could further raise this burden.
So, which Indian companies are most at risk?
Based on data available from Grok, companies across sectors such as pharmaceuticals, chemicals, textiles, auto components, engineering goods, solar exports, and processed foods are expected to be impacted.
Key Indian companies with high US export exposure:
1. Pharmaceuticals:
- Aurobindo Pharma (50% US revenue)
- Natco Pharma (70%)
- Dr. Reddy’s (45%)
- Cipla, Lupin, Zydus Cadila (30–40%)
2. Chemicals:
- Vinati Organics, Navin Fluorine, Gujarat Fluorochemicals (~25–30%)
- Aarti Industries, Deepak Nitrite, Atul Ltd (~20–25%)
3. Textiles & Garments:
- Welspun India (60%)
- Indo Count Industries (70%)
- Trident, Himatsingka Seide, Arvind Ltd (25–50%)
4. Auto Components:
- Sona BLW (45%)
- Bharat Forge, Balkrishna Industries (25–30%)
- Minda, Motherson, Jamna Auto (~20%)
5. Processed Food & Agri:
- Apex Frozen, Waterbase (~40–50%)
- LT Foods, KRBL, ITC, Britannia (~20–25%)
6. Engineering & Solar:
- Adani Green, Waaree Energies (~25–40%)
- L&T, Borosil, Cummins India, Jindal Saw, Welspun Corp (~20–30%)
7. Power Gear:
- ABB India, GE T&D, CG Power (~15–25%)
- BHEL, TRIL, Bharat Bijlee (~10–15%)
With Trump reiterating that India charges tariffs as high as 70% on certain items and that the 26% duty is a “kind” response, Indian exporters may need to brace for significant margin pressure and explore alternate markets like the EU and ASEAN to offset potential losses.
“PM Modi is a great friend of mine,” Trump said during the announcement. “But they’re not treating us right. They charge us 52%. We’re charging 26% in return.”
What’s next?
The new tariffs are effective from April 3, 12:01 a.m. EDT. The US Commerce Department is expected to publish a detailed list of affected goods in the coming days.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Data has been compiled with the assistance of Grok AI, and figures are approximate. Export exposure and revenue percentages may vary based on company filings and market conditions.
