
UBS CEO: Trump tariffs will impact consumption and inflation

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CLSA on pharma: Trump's 25% tariff adds uncertainty; firms may hike prices if generics included
By News Desk Published on July 31, 2025, 08:03 IST CLSA has flagged heightened uncertainty for Indian pharmaceutical companies following former U.S. President Donald Trump's announcement of a 25% tariff on all Indian goods exported to the U.S., effective August 1. While the industry remains hopeful that pharmaceutical products—particularly generic drugs—will be exempt, clarity is still awaited due to the ongoing Section 232 investigation. According to CLSA, most pharma companies are operating under the assumption that generics will not be covered under the new tariff slab. However, in the event that these products are not excluded, companies intend to offset the impact by passing on the additional costs through price hikes. The brokerage highlighted key pharma stocks with high exposure to the U.S. market: Aurobindo Pharma (48% of revenues from U.S.) Zydus Lifesciences (47%) Dr Reddy's Laboratories (46%) Lupin (38%) Sun Pharma (33%) Cipla (30%) CLSA's analysis underscores the sector's vulnerability to U.S. trade policy shifts, even as firms prepare strategic responses to mitigate potential disruptions. Disclaimer: The views expressed in this article are based on brokerage reports and do not constitute investment advice. Please consult your financial advisor before making any investment decisions. Ahmedabad Plane Crash News desk at


Business Upturn
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FII flows will be hurt as US announces 25% tariffs on Indian goods; volatility expected to rise: Experts
Foreign institutional investor (FII) flows into Indian equities are likely to come under pressure following the United States' unexpected move to impose 25% tariffs on Indian goods, according to a note by Nuvama. The development, which comes amid already fragile global macros, may significantly impact market sentiment and capital flows in the coming weeks. US tariffs on India higher than expected US President Donald Trump has announced that the country will impose a 25% tariff on Indian goods starting August 1, mirroring the policy signaled earlier on April 2, dubbed 'Liberation Day'. The rate is notably higher than the overall average US import tariff of 18%, and is only below that of China (55%) and Bangladesh (35%) among major emerging markets. India's goods exports to the US, which stand at around $87 billion (roughly 20% of India's total exports and 2.5% of GDP), are likely to be impacted. Key export sectors such as textiles, pharmaceuticals, electronics, agriculture, and machinery are particularly vulnerable. Export hit may be manageable—but the bigger story is global Nuvama's analysis suggests that while the direct hit to exports could be partially cushioned by redirecting shipments to other countries and through benefits from the recent INR depreciation, the bigger threat lies in the indirect global impact of the US move. 'The tariff-led narrowing of the US trade deficit, amid a weaker dollar and elevated interest rates, could impart a deflationary impulse globally, weighing on trade, earnings, and growth—including in India,' the brokerage said. This could lead to reduced FII interest in India, especially given lacklustre domestic demand and uncertainty in policy response. Nuvama suggests that further monetary easing by the RBI may be warranted to mitigate the blow to external trade. FII flows at risk; market volatility ahead The note warns that capital flows into India are now extremely sensitive, particularly in a market where promoter selling is rising and DII flows are slowing. The sectors most directly exposed to the US in terms of pricing include pharma, auto ancillaries, select industrials, cables & wires, and ceramics. However, the broader risk is indirect—with concerns that FII outflows could hurt small and midcap stocks, and high-beta domestic cyclicals like NBFCs, real estate, and capital goods. One potential winner from the situation could be the IT sector, which may benefit from INR depreciation and currently attractive relative valuations. Conclusion: Cautious outlook warranted While the actual export impact of the tariffs might be limited in GDP terms, the spillover effects on FII flows and global demand could be significant. With uncertainty elevated and no clear timeline for trade negotiations, markets are likely to remain volatile, and foreign inflows may soften further in the short term. Nuvama retains a cautious stance on Indian equities, citing both macroeconomic headwinds and sector-specific risks. Ahmedabad Plane Crash


Business Upturn
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Trump tariff impact: CLSA flags ‘hit to safe haven' status; brokerages see export, GDP risks for India
India risks losing trade edge as Trump targets tariffs; CLSA flags investor sentiment hit By News Desk Published on July 31, 2025, 07:55 IST Leading brokerages including CLSA, Nuvama, and Elara Securities have cautioned against the economic and market implications of former U.S. President Donald Trump's fresh tariff measures, including a 25% import duty on Indian goods. While some macro indicators may soften the blow, analysts flagged sectoral vulnerabilities and risks to India's perception as a safe haven for global investors. CLSA said that Trump's imposition of a 25% tariff and penalties related to India's trade with Russia could alter India's perceived position as a neutral and strategic trade partner. The firm noted that India's ability to maintain a balanced geopolitical relationship with both the U.S. and Russia had so far benefited its safe haven status. However, the latest U.S. action raises doubts over whether India can continue leveraging this dual relationship, especially amid a bi-polar global order. The brokerage added that these developments come at a time when Indian equities are already among the most expensive in the world, making them more sensitive to foreign fund outflows. A reduction in optimism around India's relative trade advantages and higher tariffs could hurt key exporting sectors such as electronics, pharma, and industrials. CLSA also warned that if crude oil supply from Russia is curbed, it may drive prices up, adversely impacting India. Nuvama, meanwhile, believes India's overall GDP impact may be limited due to the small contribution of U.S.-bound exports, though the trade redirection to other nations could provide some cushion. It also noted that sustained INR weakness might help limit the tariff blow. However, it flagged the broader risk of a shrinking U.S. trade deficit, particularly amid a weaker dollar and higher interest rates. Elara Securities projected a potential 30 basis points hit to India's GDP growth in case a new trade deal isn't reached with the U.S. The brokerage highlighted direct exposure for sectors like pharmaceuticals, auto ancillaries, industrial machinery, and gems and jewellery. However, it sees a possible upside for IT firms due to the weakening rupee. Elara also noted that India's post-tariff trade rate now exceeds that of Vietnam, the Philippines, and Indonesia—posing a competitive disadvantage. Disclaimer: The views expressed in this article are based on brokerage reports and do not constitute investment advice. Please consult your financial advisor before making any investment decisions. Ahmedabad Plane Crash News desk at