Trump Tariff Impact: ITC, Raymond, Tata Motors, Sona BLW, Welspun Among Stocks That Can Take Revenue Hit
US President Donald Trump announced reciprocal tariffs on Wednesday, during his 'Liberation Day' speech in the White House. India will face 26% "discounted" tariffs, with the auto industry facing a 25% levy.
Trump has announced a 10% baseline tariff on all countries, which will come into effect starting midnight eastern standard time on April 5. The higher-than-baseline tariffs will take effect from April 9.
As per US President Donald Trump, India imposes 52% tariff rates on US imports coming into the country. The US accounted for around 17% of Indian exports in fiscal 2024.
With India being a key trade partner of the US, the new duties could significantly impact bilateral trade, especially in sectors like automobiles, textiles, and industrial goods.
Estimated Loss In Exports
As per Emkay Research, a 25% reciprocal tariff can lead to a potential loss of $31 billion for India in its exports to the US.
A broad country-level tariff by the US was the most likely scenario, it had said.
The broad country level tariff policy is the simplest option, according to Emkay. However, this could cause the most volatility as all goods from India would now face the same levy, notwithstanding their relative importance or cost.
Top Sectors At Risk
India's top exports to the US are electronics, gems and jewellery, pharma products, machinery (including those for nuclear reactors) and refined petroleum products. These five sectors alone accounted for 53% of India's total exports to the US in fiscal 2024.
Key Exemptions
Out of these top five sectors, Indian pharma products and certain refined petroleum products have been exempted from the reciprocal tariffs.
Other key items that have been exempted from the tariffs are copper, semiconductors and lumber articles.
Here is a look at some stocks within sectors that could be impacted by the US tariffs.
Auto & Auto AncillariesÂ
The auto space could be one of the worst hit by the reciprocal tariffs. Stocks like Sona BLW, Bharat Forge, Ramkrishna Forging, Tata Motors and more derived more than 20% of their FY24 revenues from the US.
Textile
Companies like Himatsingka Seide and Welspun Living derived 83% and 63% of their FY24 revenues from the US, respectively.
Other stocks with US exposure also include Indo Count Industries, Arvind, Vardhman Textiles, Page Industries, and Raymond.
Chemical
As per annual reports, the US accounted for 20% to 25% of UPL's FY24 revenues. While the contribution from the US for SRF and Jubilant Ingrevia stood at 20% and 9%, respectively.
Other stocks that have export exposure to the US include Aarti Industries, PI Industries, Atul, Navin Fluorine International, Deepak Nitrite, Vinati Organics, Alkyl Amines Chemicals, and Gujarat Fluorochemicals.
Seafood
Avanti Feeds, Apex Frozen Food, and Waterbase are some companies that derive revenues from the US in the seafood sector. Apex Frozen Foods saw 63% of its revenues come in from the US in fiscal 2024.
Consumer Goods
Companies like ITC, Godrej Agrovet, Venky's (India), Britannia Industries, Nestlé India, Haldiram's, Mrs. Bectors Food Specialities, Heritage Foods, Kohinoor Foods, MTR Foods, Vadilal Industries Ltd also have exposure to the US.
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