Shares of SRF Ltd. fell sharply by 4.08% to ₹2,859.85 in early trade on April 3, following U.S. President Donald Trump’s announcement of a sweeping 26% reciprocal tariff on imports from India, excluding only a few sectors such as pharmaceuticals. The tariff announcement, made during the early hours of Thursday (IST), triggered investor concerns across India’s chemical manufacturing space.
The steep hike in tariffs significantly impacts companies like SRF, whose exports to the U.S. constitute around 12% of their overall revenues, according to its FY24 annual report. Previously, Indian chemical exports to the U.S. were subject to a lower 3.5% import duty, meaning the new tariff marks a more than sevenfold increase.
At 9:36 AM, SRF shares were trading at ₹2,859.85, down ₹121.75 from the previous close of ₹2,981.60. The stock has touched a low of ₹2,861.45 in intraday trade, with a market capitalization of ₹848.75 billion.
While other chemical exporters like China, Japan, South Korea, and the European Union have also been hit with higher reciprocal tariffs—ranging from 20% to 34%—India still remains competitively positioned due to similar treatment across the board. However, margin pressures for exporters like SRF are likely to weigh in the near term.
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