Trump’s tariff gambit: 5 Indian sectors on high alert as April 2 deadline looms

«India has historically had higher tariffs on US goods than the US imposes on Indian goods. This means India is one of the key targets for Trump’s tariff realignment. The impact could be significant across pharmaceuticals, automobiles, agriculture, and textiles, disrupting billions in trade,” said Ross Maxwell, Global Strategy Operations Lead at VT Markets.

While India is attempting to negotiate a diplomatic resolution, some analysts fear that tit-for-tat responses from other nations could escalate into a full-scale trade war. «The imposition of US tariffs could disrupt momentum for export-driven sectors, particularly those reliant on discretionary spending, while also sparking intense price competition from other affected economies. This uncertainty could keep private sector capital expenditure on the sidelines until clearer signals emerge,» said Sachin Gupta, Executive Director and Chief Rating Officer, CareEdge Ratings.

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Sectors on the Chopping Block

1) Electronics: India’s Largest Export to the US Under Threat

India’s electronics exports to the US totaled $11.1 billion in FY24, making up 14% of the country's total exports to America. The US, in turn, accounts for a staggering 32% of India's electronics exports. A sectoral tariff differential of 9% could hit this industry hard, analysts say.

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More than half of India’s electronics exports to the US are mobile phones, predominantly iPhones assembled in India. If the