Trump’s Tariff Decision Sparks Mixed Reactions Across Indian Industries

• Relief for Pharma and Energy Sectors; Major Setback for Jewelry and Electronics Exports

• High Tariffs on Competing Nations Offer Competitive Edge to Indian Textile Industry

After months of speculation, U.S. President Donald Trump has officially announced steep tariffs on imports from several countries, including India. The newly imposed tariffs, which include a significant 27% duty on Indian goods, reflect a notably tough stance. This development has triggered mixed responses across Indian industries—some sectors are breathing a sigh of relief, while others brace for impact.

The pharmaceutical and energy sectors have been exempted from the new tariff list, offering them a considerable advantage. However, sectors such as gems and jewelry, along with electronics, are expected to suffer substantial setbacks due to the increased tariff burden.

India’s key exports to the United States include pharmaceuticals, telecom equipment, gemstones, petrochemical products, jewelry, and garments. In contrast, India imports crude oil, coal, electrical machinery, and aerospace equipment from the U.S.

Exports of gems and jewelry from India to the U.S. are valued at around $10 billion, while electronics exports stand at approximately $14 billion. These sectors are likely to face the most severe impact, as the previous tariffs—2.12% on jewelry and 0.41% on electronics—have now been significantly increased.

Although auto parts and aluminum have been excluded from the new tariff hike, the existing 25% duty on these items will continue to be enforced, according to Trump’s order. On the other hand, the pharmaceutical and energy sectors, which contribute about $9 billion in exports to the U.S., remain unaffected, offering them much-needed relief.

Products excluded from the new tariffs include pharmaceuticals, copper, semiconductors, gold and silver, and certain minerals. Meanwhile, the textile sector is poised to benefit, as competing countries like Bangladesh, Vietnam, and China have been hit with higher tariffs—potentially giving Indian exporters a competitive edge.

India’s textile industry contributes about 2% to the country’s GDP, compared to 11% and 15% for Bangladesh and Vietnam, respectively. With higher tariffs making exports from these nations less competitive, Indian textiles may now find new opportunities in the U.S. market.