Trump Tariff Impact: Textiles, Pharma, Oil & Gas, Electronic Equipment Face Threat

US President Donald Trump's 25% tariff on India can impact India's export-led growth across key industries, including pharmaceuticals, textiles, auto components, chemicals and energy.

Among the hardest hit would be auto and auto ancillary companies with high exposure to the US. Sona BLW derives 40% of its revenue from the US, followed by Ramkrishna Forgings (27%), Bharat Forge (25%) and Tata Motors (23%).

Other exposed firms include Samvardhana Motherson and Balkrishna industries (18% each), Sansera Engineering (9%) and Apollo Tyres (3%).

A sharp increase in costs could lead to order cancellations or renegotiations from US clients, hurting earnings and production visibility.

The pharmaceutical industry, a major contributor to India’s exports at $12.5 billion, is already under scrutiny by the US Commerce Department. Trump has hinted at "never seen before" tariffs on pharma.

Companies like Gland Pharma and Aurobindo Pharma, which derive 50% of their revenue from the US, face significant earnings risk, as do Dr Reddy's (45%), Zydus Lifesciences (45%), and Lupin (38%).

Such tariffs could make Indian generics more expensive, reducing competitiveness in the world’s largest pharma market.

Textiles and garments, which rely on the US for about 28% of exports, are also vulnerable. Himatsingka Seide (83% US revenue), Welspun Living (63%) and Alok Industries (45%) are among the top exposed. A shift in cost structures due to increased tariffs could hit already thin margins.

Since the US also supplies a large portion of India’s cotton imports, the sector faces a double blow — higher costs and reduced demand.

In the energy sector, there is an indirect impact. India currently imports 35–40% of its crude from Russia at discounted prices. A forced switch to alternative suppliers due to geopolitical alignment with the US would raise costs by about $3 per barrel. This would dent marketing margins of oil marketing companies and reduce Reliance Industries' Ebitda by approximately 3%, with the OMCs facing up to 10% erosion.

Exporters of solar PV modules, particularly Waaree Energies (57% US order book), could also face headwinds. Similarly, chemical companies, such as Aarti Industries, Deepak Nitrite and UPL, with US revenue ranging from 9% to 25%, would feel the pinch.

Seafood exporters like Apex Frozen Foods (63% US revenue), Waterbase (40%) and Avanti Feeds (14%) are niche but significantly dependent on the US market. Tariffs could hurt profitability and global competitiveness.

Consumer goods companies, such as LT Foods (39% US revenue), Tata Consumer Products (12%) and KRBL (10%), can also see moderate disruption, especially in premium export categories like basmati rice.

Sectors like IT services, FMCG, telecom, real estate, banks and steel are expected to be relatively insulated.