New Delhi, march 27, 2025.
With the US set to roll out reciprocal tariffs on April 2, there’s growing concern about what this means for India. Adding to the uncertainty, US President Donald Trump, on Wednesday, announced a 25% tariff on imported cars, effective April 2. The White House projects this move will generate an additional $100 billion in revenue while boosting US manufacturing.
In a research note on Wednesday, Emkay Global estimates that a country-level 10% tariff could shave off about $6 billion from India’s exports (0.16% of GDP), and if tariffs jump to 25%, losses could soar to $31 billion. Instead of targeting specific sectors, it notes these tariffs will likely apply at the country level, making it harder to dodge their impact.
While India is among the more vulnerable countries, some key export industries—like automobiles, pharmaceuticals, and electronics—are still in a relatively safe zone. However, high-exposure sectors such as apparel gems and jewellery could take a major hit. The good news? India has room to negotiate by boosting US imports of energy and defence products while lowering tariffs on select American goods like electric vehicles (EVs) and agricultural products
