Midnight shocker? 5 Indian sectors on edge as Trump to drop tariff bomb

It's D-day. With just hours to go before US President Donald Trump announces fresh reciprocal tariffs for the world and on Indian products, subcontinent exporters are keeping their fingers crossed, while bracing for potential shocks across key sectors.The potential tariffs are expected to ignite a 'global trade war'. The looming decision by the Trump administration, expected post Wednesday midnight, could significantly impact industries such as agriculture, pharmaceuticals, chemicals, electronics, and machinery. The auto tariffs have already shown its impact on companies as their share prices continue to stumble. "We are keeping our fingers crossed because of the unpredictability of the Trump administration at the tariff front. But if it will be imposed, it may affect initially but not in the longer run. The whole burden, though, will be on American consumers," said Mumbai-based engineering exporter SK Saraf. Trump’s tariff gambit- These Indian sectors on high alert as April 2 deadline loomsThe move comes as the US eyes a tariff differential across various sectors, with high duties on Indian goods due to gaps between import levies imposed by the two nations.1. Agriculture: Shrimp, dairy exports face the heatThe hardest-hit segment in agriculture is expected to be seafood, particularly shrimp, which already faces antidumping and countervailing duties in the US."Already our exports have antidumping and countervailing duties in the US. The additional hike in tariffs will make us uncompetitive. Out of India's total shrimp exports, we ship 40 per cent to America," PTI quoted Yogesh Gupta, MD of Kolkata-based seafood exporter Megaa Moda as saying.Processed food, sugar, and cocoa exports, valued at $1.03 billion, may also struggle under a 24.99% tariff gap, while dairy products, including ghee, butter, and milk powder, could be “severely” impacted by a 38.23% tariff differential, according to GTRI Founder Ajay Srivastava.2. Automobiles: A staggering 23% tariff differentialThe biggest tariff gap exists in the automobile and auto components sector, standing at a whopping 23.1%. This could severely impact India's automobile exports, making cars, motorcycles, and spare parts significantly costlier for US consumers.3. Jewellery: Diamonds and gold to get expensiveThe diamonds, gold, and silver sector, with $11.88 billion in Indian exports, may see a 13.32% duty hike, raising jewellery prices in the US and reducing competitiveness. Gearing up for Trump tariffs, India weighs multiple scenariosTextile exports, including fabrics, yarn, and carpets, worth $2.76 billion, could also face a 6.59% tariff, making Indian textiles pricier.4. Electronics: Indian gadgets to become pricierThe electronics and telecom sector, which exported $14.39 billion worth of goods in 2024, faces a 7.24% tariff gap. Mobile phones, laptops, and other electronic devices could become less competitive in the US market.5. Pharmaceuticals: Costlier medicines for US consumers?India’s pharmaceutical exports, worth $12.72 billion in 2024, could face a 10.90% tariff differential, increasing costs for generic medicines and specialty drugs in the US. This could make Indian drugmakers less competitive in the American market."Chemicals (excluding pharmaceuticals), exports worth $5.71 billion, could be affected by a 6.05% tariff, reducing US demand for Indian specialty chemicals," Srivastava added.Other sectors facing potential impactMeanwhile, footwear exports worth $457.66 million face a 15.56% tariff gap, further straining India’s competitiveness in the global market. The machinery sector, including boilers, turbines, and computers, worth $7.10 billion, could also see a 5.29% tariff hike, impacting India’s engineering exports.(With inputs from PTI)