NEW DELHI: US President Donald Trump’s plan to introduce 25% tariff on imports of automobiles, semiconductors, and pharma could be bad news for India. While the impact on Indian semiconductor sector is expected to be negligible as the industry is still at a nascent stage, the tariffs could inflict pain on pharma firms for whom the US is the largest export market. As for India’s auto industry, only 0.2% of car exports go to the US. However, higher levies on auto parts could deal a blow as the auto components segment grew 7% to $11.1 billion in the first half of FY25, with North America accounting for 31% of exports.Pharma exports to the US reached $8.73 billion in FY24, accounting for 31% of the industry’s total exports, according to the Pharmaceuticals Export Promotion Council of India (Pharmexcil) data. Indian drugmakers expect some impact as the industry heavily relies on American demand for growth.
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