Aside from imposing a 25% tariff on Indian imports, the US President warned of harsher action for countries that continue to buy oil from Russia. Here’s a look at the sectors and stocks that may be the worst hit by the US tariffs.
| Category | Export value in FY24 | Share of India’s exports to the US |
| Electronics | $11.1 billion | 14.3% |
| Gems and jewellery | $9.9 billion | 12.8% |
| Pharma products | $8.1 billion | 10.4% |
| Nuclear reactors and machinery | $6.2 billion | 8% |
| Refined petroleum products | $5.8 billion | 7.5% |
In FY24, the US accounted for about 30% of India’s total gems and jewellery exports. Watch out for stocks like Rajesh Exports, Titan, Kalyan Jewellers and their peers.
Diamonds, cut and polished, accounted for $5.6 billion, more than half of all gems and jewellery exports to the US in FY24. There was no tariff on these products sold to the US so far.
The increase in tariff from Aug 1 would 19 percentage points in the case of gold and silver jewellery (plain or studded).
“Even if it’s 26%, we are still better off than Bangladesh at 35% and China at 30%,” said Sudhir Sekhri, Chairman of the Apparel Export Promotion Council told CNBC-TV18 on July 28. “Vietnam has 20% plus another 20% if it’s transshipment. Indonesia at 19% is the closest competition.”
| Trading partner | US tariffs on April 2 | Tariff post negotiation |
| European Union | 20% | 15% |
| Japan | 24% | 15% |
| Vietnam | 46% | 20% |
| Indonesia | 32% | 19% |
| Philippines | 17% | 19% |
The jump in tariff from zero to 25% on the drugs exported to the US could’ve been a big blow for stocks like Sun Pharmaceutical, Lupin, and Dr Reddy’s Laboratories. Indian pharma majors rely on the US market for more than half of their overall exports.
However, White House officials told CNBC-TV18 exclusively that pharma products remain exempt from the reciprocal tariff for now. Fears are that there may be a separate tariff, possibly a higher one, on drugs exported to the US. For now, there’s no additional duty.
Chemicals (including pharmaceuticals) is the only space where Indian exporters still have an edge over China. In the ongoing trade war, the Donald Trump administration has imposed a 30% tariff on China (which expires on Aug 12), compared to 25% on India and Singapore. The three countries are the biggest exporters of chemicals to the US.
An earlier version of the story said that the 25% tariff will be applicable on drug exporters too. However, it has been corrected after clarification from the White House early on July 31. Pharma products are exempt from reciprocal tariffs for now. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
(Edited by : Sriram Iyer)
First Published: Jul 30, 2025 6:54 PM IST
