Trump's 25% Tariff shock shakes D-Street today; pharma among top 5 vulnerable sectors
Adding to the uncertainty is the lack of clarity around an additional penalty linked to India's arms and energy imports from Russia, which remains undefined at this point.
Explore courses from Top Institutes in
Please select course:
Select a Course Category
MCA
Degree
Design Thinking
PGDM
Others
CXO
Data Science
Data Analytics
healthcare
Management
Operations Management
Digital Marketing
Cybersecurity
Leadership
MBA
Public Policy
Project Management
others
Product Management
Healthcare
Technology
Data Science
Skills you'll gain:
Programming Proficiency
Data Handling & Analysis
Cybersecurity Awareness & Skills
Artificial Intelligence & Machine Learning
Duration:
24 Months
Vellore Institute of Technology
VIT Master of Computer Applications
Starts on
Aug 14, 2024
Get Details
'From a technical standpoint, this move could weigh on near-term export competitiveness and trigger currency volatility if sentiment deteriorates,' said Feroze Azeez, Joint CEO of
Anand Rathi Wealth
.
'The Indian market is currently being driven largely by domestic investors, and FIIs are almost 85% short. Therefore, a major sell-off is not expected. Some volatility is likely, any dips will be buying opportunities for investors with even 2-3 year time frames as we have already had a 10-month time correction,' he added.
Sectoral Impact Overview
Here's a breakdown of the sectors that may react to the newly imposed tariffs:
1. Pharmaceuticals
The ongoing Section 232 investigation into pharmaceutical imports presents a medium-term overhang for the sector, with the possibility of additional pharma-specific tariffs in the pipeline.
'In the absence of clarity on the potential rate and scope of such tariffs, it remains difficult to quantify the impact on Indian pharma players at this stage,'
said Maitri Sheth, Equity Research Analyst at Choice Broking.
Industrials, Cables & Wires
According to a note by domestic brokerage firm Nuvama, the direct impact of the tariffs is likely to be felt in sectors where the US sets the marginal price—such as select industrials, cables & wires, and tiles.
2. Steel & Aluminium
Steel and aluminium products already under Section 232 tariffs are excluded from the new reciprocal duties. However, the sector could still feel the heat from global pricing pressures and demand fluctuations.
'India, by contrast, expected its labour-intensive industries to be tariffed lower than other Asian competitors and wanted a reprieve from Section 232 tariffs on sectors such as steel, aluminum, and copper,' noted Nomura in its report.
Also read:
Trump's tariffs threaten to deepen $248 billion India stock rout
3. Auto
While automobiles and auto parts are mostly exempt under Section 232 provisions, Indian auto component manufacturers remain vulnerable to shifts in U.S. demand cycles.
'Sectors under ongoing Section 232 investigation (pharmaceuticals, semiconductors & electronics, among others) are currently exempt from reciprocal tariffs, while existing Section 232 tariffs will apply on steel & aluminum (50%) and autos – finished and parts (25%),' analysts at Nomura said.
4. Textiles
India's textile exports to the U.S. are relatively small on the global stage, but the sector is highly sentiment-sensitive. Companies with significant U.S. exposure could face short-term selling pressure.
'The US is India's largest export destination, accounting for ~18% of total exports and ~2.2% of GDP. These industries form the backbone of India's manufacturing sector and have some of the largest formal sector employers, especially labour-intensive industries such as gems and textiles.'
Nomura added, underlining the critical link between exports and industrial growth.
5. Energy
President Trump's announcement included a 25% tariff on Indian imports from August 1, along with an unspecified 'additional penalty' for India's continued energy and military purchases from Russia. This follows the earlier 26% reciprocal tariff imposed on India on April 2.
In a post on Truth Social, Mr. Trump reaffirmed ties with India but emphasized his concerns:
Mr. Trump called India a friend, but cited India's high tariffs, nonmonetary trade barriers, the purchase of Russia's military equipment and Russian energy as the reasons for imposing the 25% tariffs plus penalty.
This reflects broader geopolitical concerns over India's dependence on Russia, beyond just tariff-related issues.
Analysts warn that elevated tariffs, combined with increasing pressure to scale back Russian energy imports, could further weigh on net exports and dampen overall growth momentum.
(
Disclaimer
: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
8 minutes ago
- Indian Express
‘Scrutiny of documents necessary': HC denies bail to alleged Bangladeshi national arrested for 'illegal' entry in India
Rejecting the bail plea of a Thane resident, an alleged Bangladeshi national who police claimed illegally entered India, the Bombay High Court on Tuesday observed that his claim of being Indian citizen and identity documents be strictly examined under Citizenship Act. 'The applicant has failed to produce any document duly verified or authenticated by the concerned government authorities that could conclusively establish his Indian citizenship,' a single-judge bench of Justice Amit Borkar observed in an order on bail application of Babu Abdul Ruf Sardar, who claimed that he had valid Indian identity proofs including Adhaar card, Voter ID, PAN Card, and Passport. 'Merely relying on the existence of certain identity documents such as Aadhaar, PAN, or Voter ID, without verification of the process through which these were obtained, cannot be treated as sufficient proof of lawful citizenship at this stage, particularly when the very authenticity of such documents is under investigation,' the HC noted. 'In such circumstances,' the Justice Borkar added, 'where the investigation is at a crucial stage, and where serious allegations involving national security, illegal entry, and use of forged government documents are involved, the Court finds it neither proper nor prudent to enlarge the applicant on bail at this juncture.' Wagle Estate Police station in Thane had last year arrested Sardar under provisions of Bharatiya Nyaya Sanhita (BNS), Passport (Entry into India) Act, and Foreigners Order for entering India without valid passport or travel documents, deliberately suppressing foreign nationality by creating and using forged Indian identity documents such as Aadhar, PAN and falsely showing himself as Indian citizen. The Police claimed that he not only misrepresented his status before the authorities but also obtained an Aadhaar Card by submitting fabricated documents. Moreover, as per police, the mobile phone found in possession of the application contained digital copies of his and his mother's birth certificates allegedly issued by Bangladesh authorities which raised suspicion that he was a Bangladeshi national who illegally entered India. The probe also revealed frequent communication with several numbers linked to Bangladesh. The prosecution said that official verification regarding the genuineness of the Aadhar card was awaited from the authority. Advocate Jyotiram S Yadav for the applicant denied prosecution's claims and argued that his client was a bona fide citizen of India and there was no reliable or conclusive evidence produced by the prosecution to prove that he was Bangladeshi national. He also argued that his applicant had no connection with alleged Bangladeshi birth certificates. Additional Public Prosecutor Megha S Bajoria for Thane Police, while opposing the bail plea, claimed the possibility of the applicant being part of 'larger organised network involving illegal immigration and identity fraud,' and his release would have implications for national security. The court said that whether the documents were true or false will be decided in the trial, documents such as Bangladeshi birth certificates found on the applicant's own phone were 'important and cannot be ignored,' and if found genuine, it would impact the question of his citizenship. Observing the allegations were 'not small,' the judge said 'the fact that he was allegedly able to get official documents through fraud shows that he has the ability to misuse the system and create a false identity again if given the chance.' Rejecting the bail plea, the HC noted that fear expressed by prosecution of applicant destroying evidence in case released on bail was 'not empty' or 'imaginary' and the 'danger of applicant running away from the law or interfering with investigation was real.'
Economic Times
8 minutes ago
- Economic Times
Classic Legends to rev up exports, accelerate domestic network expansion
Premium motorcycle maker Classic Legends, owner of iconic brands Yezdi, Jawa and BSA, is revving up its international ride with exports slated to start this year to markets including the UK, Europe, Australia, Japan, and Latin America, while also accelerating domestic network expansion, its top officials said on Tuesday. A part of the Mahindra Group, the company, which launched its new model 2025 Yezdi Roadster priced between Rs 2.09 lakh and Rs 2.26 lakh (ex-showroom Delhi) here, has, however, paused plans to launch its BSA bikes in the US due to the current tariff uncertainty, Classic Legends MD & Co-Founder Anupam Thareja told PTI here. In a joint interview, Classic Legends Chief Business Officer, Sharad Agarwal said the company is looking to double its overall sales this year to around 80,000 units from about 40,000 units annually clocked last year. "We are building a global distribution (network). We have launched BSA Bantam in the UK. We are sold out there now for the season," Thareja said when asked about the company's overseas expansion plans. Elaborating, he said, "We signed up Italy, Spain, Germany, France, Austria. We are signing up Australia. We have already signed up New Zealand." The BSA brand will target the developed markets such as Japan, Australia, New Zealand, the whole of Europe, the UK and the US, he noted. Thareja, however, said the plans to launch it in the US has been paused due to the current uncertainty after the US President decided to impose tariff amounting to a total of 50 per cent Indian goods. "US, I have no idea... Our bikes are on high seas. Our bikes are at customs there. We don't know what to do," he said, when asked about the expected dates of launch in the US. It could have been a big market because when BSA was the largest motorcycle brand in the world, USA was its largest market, he noted. Sharing the company's strategy for export markets, Thareja said while BSA will be exported to the developed markets, Jawa will target markets in Eastern Europe, Latin America, including Brazil, Argentine and Chile, and part of North Africa, where Jawa was very popular. "This will be the year where you will see our exports start," he asserted. In the domestic market, both Yezdi and Jawa are being sold along with a small quantity of the BSA model, Agarwal said. About overall sales expectations, he said, "This year we will the double our volumes. Last year, we did around the 40,000 units." In term of domestic sales network, Agarwal said the company has over 350 dealers and will be over 450 around the festive season of Diwali. "We aim to close this year with over 500 dealers and that will technically cover 80 per cent of the volumes in the sector," he added. The company will have sales and service network in the top 40 markets, the next 150 cities and key tier-III cities, Agarwal said. For this year, the company has launched four models, including the Yezdi Roadster, and another one will be introduced, he said without elaborating. Speaking at the launch event, Mahindra Group Chairman Anand Mahindra said Classic Legends is giving the Yezdi brand "the power to speak two languages" -- one, the language of memory, for those who remember it, who experienced it, who loved it "and the other language is the language of aspiration, who are going to take this forward in the future," he noted. The efforts would be to offer young customers not just a product but one that is authentic, that has depth, history and has the credibility, that a startup brand cannot offer, Mahindra noted.
News18
8 minutes ago
- News18
Washington Mayor SLAMS Trump: ‘Illegal to Use Military on Americans'
Washington Mayor SLAMS Trump: 'Illegal to Use Military on Americans' | Bowser's Bold Rebuttal | N18G Last Updated: August 12, 2025, 20:00 IST Videos Tensions escalate in Washington D.C. as Mayor Muriel Bowser openly rejects former President Donald Trump's controversial move to deploy police and military forces against American citizens. Bowser calls it 'illegal to use the military on Americans' and warns that such actions threaten democracy and civil rights. The clash comes amid growing concerns over the militarization of domestic law enforcement, raising questions about constitutional rights, federal authority, and the limits of presidential this video, we break down Bowser's fiery statement, the legal implications of Trump's plan, and what this political showdown means for the future of civil liberties in the United States. From the streets of Washington to the halls of power, this is a battle over law, order, and the Constitution. News18 Mobile App - homevideos Washington Mayor SLAMS Trump: 'Illegal to Use Military on Americans' | Bowser's Bold Rebuttal | N18G CNN name, logo and all associated elements ® and © 2024 Cable News Network LP, LLLP. A Time Warner Company. All rights reserved. CNN and the CNN logo are registered marks of Cable News Network, LP LLLP, displayed with permission. Use of the CNN name and/or logo on or as part of does not derogate from the intellectual property rights of Cable News Network in respect of them. © Copyright Network18 Media and Investments Ltd 2024. All rights reserved.
