Imagine walking into your favourite store and suddenly seeing price tags shoot up overnight. That’s exactly what could happen with US President Donald Trump’s proposed tariff plan.
With new tariffs set to take effect on Liberation Day, the move is sending shockwaves across multiple industries. The noise around implementation is only expected to grow louder.
According to Emkay Global, India could potentially lose around $6 billion (0.16% of GDP) in exports if broad 10% tariffs are imposed. If tariffs rise to 25%, the hit could be $31 billion. The uncertainty around whether the US will impose broad country-level tariffs or sector-specific ones adds to the market jitters.
Electronics are India’s largest export category to the US, raking in $11.1 billion in FY24, or about 14% of total US exports from India. More than 50% of these exports are iPhones assembled in India and shipped to the US, added the Emkay report.
If the US imposes reciprocal tariffs, iPhones assembled in India could get pricier for American consumers. Given that Apple already faces 40% tariffs on Chinese-made iPhones, additional tariffs on India could disrupt Apple’s supply chain shifts and make India a less attractive manufacturing hub, the report noted.
As per the report, India’s jewellery exports to the US were worth $9.9 billion in FY24, accounting for 30% of total exports in this category. The US market is critical for cut and polished diamonds, gold jewellery, and lab-grown diamonds.
The brokerage added that India already imposes 20% tariffs on gold jewellery imports, whereas the US imposes only 5.5-7%. If the US matches India’s high import duties, Indian jewellery exports could take a significant hit.
The US is a major buyer of Indian textiles, accounting for 28% of total textile exports in FY24 (approx. $9.6 billion). However, in the apparel segment, India lags behind China (21%), Vietnam (19%), and Bangladesh (9%) in the US import market, noted the report
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