Chennai: If reciprocal tariffs by the US come into effect, pharmaceuticals are likely to face 10.9 per cent tariff, diamonds and jewellery 13.3 per cent, and electronics 7.2 per cent. Farm exports, including shrimp, dairy and processed foods will be the worst hit with tariffs going up to 38 per cent. Indian pharmaceutical exports to the US valued $12.7 billion currently face 0.01 tariff, while $567 million worth imports from the US face 10.91 per cent tariffs, resulting in a tariff differential of 10.90 per cent. This will make Indian generic formulations and specialty drugs less competitive in the US market. Similarly, diamonds, gold, and silver, with $11.88 billion in exports, will see a 13.32 per cent tariff hike, raising Indian jewellery prices in the US, as per the data from GTRI. Electrical, telecom, and electronics exports worth $14.39 billion face a 7.24 per cent tariff, affecting iphones, and communication devices. Automobiles, including auto parts, worth $2.80 billion, face a 23.10 per cent tariff, machinery, boilers, turbines, and computers, valued at $7.10 billion, will see a 5.29 per cent tariff hike, impacting India’s engineering exports. Indian farm exports to the US currently face a 5.3 per cent tariff, whereas US farm exports to India face a much higher 37.7 per cent, creating a 32.4 per cent gap. Dairy products, worth $181.49 million, will be severely affected by a 38.23 per cent tariff differential, making ghee, butter, and milk powder costlier and reducing their market share, said Ajay Srivastava, founder, GTRI. Fish, meat, and processed seafood, including shrimp, with $2.58 billion in exports face a 27.83 per cent tariff differential. Processed food, sugar, and cocoa exports worth $1.03 billion will also struggle with a 24.99 per cent tariff increase, making Indian snacks and confectionery pricier in the US. Exports of cereals, vegetables, fruits, and spices, valued at $1.91 billion, face a 5.72 per cent tariff differential. Edible oils, with $199.75 million in exports, face a 10.67 per cent tariff, increasing costs for coconut and mustard oil. Alcohol, wines, and spirits face the highest tariff hike at 122.10 per cent, though exports are only $19.20 million. Around $10.31 million exports of live animals and animal products face a 27.75 per cent tariff differential. Chemicals worth $5.71 billion, will be affected by a 6.05 per cent tariff, textiles, fabrics, yarn, and carpets, with $2.76 billion in exports, will face a 6.59 per cent tariff, making Indian textiles pricier. Rubber products, including tyres and belts, worth $1.06 billion, will face a 7.76 per cent and footwear, with $457.66 million in exports, faces a high 15.56 per cent tariff differential.
Source link
