Trump Tariff News: Indian government carefully examines impact of US reciprocal tariffs

The U.S. government, under Donald Trump’s administration, has announced plans to impose reciprocal tariffs on key Indian export sectors, including pharmaceuticals, automobiles, and jewellery. This move is part of Trump’s broader strategy to ensure “fair trade” by targeting countries with high import duties on American goods.

Indian exporters, however, believe the impact on the pharma and auto sectors may be limited. Industry experts suggest that any tariff hikes would also affect other Asian competitors, potentially keeping Indian firms competitive in the global market.Nonetheless, Indian pharmaceutical companies such as Sun Pharma, Lupin, and Dr. Reddy’s have already seen stock prices decline by 2-4% due to market jitters over the tariff threat.

Negotiations are ongoing, with India seeking exemptions from these tariffs as part of a broader bilateral trade deal. The outcome of these discussions will be crucial in determining how these sectors navigate the evolving trade landscape.

*This news has been published on Money Control on 3rd April, 2025