Trump’s reciprocal tariffs: 3 key Indian sectors that could get hit by Trump’s trade policy

Reciprocal tariffs is a trade policy that the USA will impose on other countries, citing that it will prioritize fairness in international trade. In reciprocal tariffs, the U.S. will impose tariffs on goods imported by them at the same rate as other countries or matching the tariff rates imposed by other countries on goods exported by the U.S.

Sectors that could get hit the most are:

JEWELLERY SECTOR

This sector could be the hardest hit as the USA accounts for 30 percent of India’s total jewellery exports. Some of the products of the sector which could get hit the hardest will be lab-grown diamonds, cut & polished diamonds, and gold jewellery. The decline in exports could also impact employment in the industry.

ELECTRONICS SECTOR

The export of iPhones assembled in India has been growing exponentially over the years with Apple’s plan for production shift from China to other countries, and in electronics, mobile phones accounted for $11 billion in FY24. However, an increase in tariffs would also significantly increase the price of Electronics in the U.S., affecting  US consumers, which could lead to better negotiations incline towards India

Also read: 5 Stocks that are currently trading in oversold zone with RSI less than 30 to keep an eye on

TEXTILES SECTOR

China, Vietnam, and Bangladesh, being the largest exporters of textiles to the U.S., are at the greatest risk. However, India still accounts for $9.6 billion exports of textiles & apparel to the USA and could have some advantage when compared to Chinese textile imports.

Future Outlook

American consumers are at risk of inflated prices because of tariffs being passed down to the consumers, the US government will always be open for discussions. India could negotiate concessions for labour-incentive sectors or other key sectors which are economically very important. Further, India could benefit from tariffs that are levied on other countries like Mexico, Canada and China. However, the effect of gains would take time to reflect as it takes time to set up a supply chain.

Written By Abhishek Das

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Trump’s reciprocal tariffs: 3 key Indian sectors that could get hit by Trump’s trade policy appeared first on Trade Brains.