Five Indian stocks that could take a massive hit from potential US tariffs
Subscribe to enjoy similar stories. US President-elect Donald Trump has always called India the “tariff king". According to him, India has always levied high taxes on imports.
In his US election campaign, if there was one thing that he emphasised the most, it was about putting America first and making the country great again by strengthening their domestic industries. This basically means levying import taxes on emerging market exports, including Indian exports. If Trump pursues this policy, the Indian rupee, which is depreciating and at an all-time low, will be under tremendous pressure.
Also, this won’t be the first time that the US would levy tariffs on Indian exports. In 2018, the US imposed tariffs on steel and aluminium imports from India. In retaliation, India slapped tariffs on US agricultural products.
As an investor, you must closely examine the Indian stock market for companies that could be particularly vulnerable to these economic pressures. Keeping that in mind, we have highlighted five stocks that might face significant challenges if the tariffs are implemented. The Indian textile industry is a major exporter to the US, and in the fiscal year 2024, it exported garments and made-ups worth $7.5 billion.
Welspun Living manufactures a wide range of home textile products, including towels and bath robes, sheets, fashion bedding, and carpets. It is one of the largest Indian home textile exporters and earns close to 88% of its revenue from exports. The company has a global reach, exporting to more than 60 countries, including the US, Canada, and the UK.
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