How US tariff hike would impact your business sectors: Ziraat Times analyses

Ziraat Times Team Report

Srinagar: The United States’ sweeping tariff revisions on imported goods, effective April 9, are expected to have far-reaching implications for most of the exporters in India. A sector-wise analysis by Ziraat Times highlights that while some industries remain unaffected, others—such as agriculture, textiles, auto parts, telecom, and gems & jewellery—face steep new costs that may affect their competitiveness in the global market. Here is a breakdown of the before and after tariff structures and what they could mean for your business sectors:

Agriculture & food products: Tariff surge

Exports to US: $5.5 billion

Tariff before: 4% to 5%

Tariff after: 30% to 31%
This sector is one of the worst-hit. The massive hike in tariffs could price Indian products out of the US market. Industry experts have urged the government to urgently negotiate a trade deal with the US, especially since nations like Canada and Mexico benefit from zero or low duties.

Pharmaceuticals: A sector sheltered

Exports to US: $8.73 billion

Tariff Before and After: 0%
Indian pharmaceutical exporters can breathe easy. The sector has been exempted under Chapter 30 of the Executive Order’s Annexure-II. With no change in tariffs, Indian pharma will continue to enjoy stability in the US market—a crucial export destination

Gems & jewellery: Costlier shine

Exports to US: $9.2 billion

Tariff Before: 5.5% to 13.5%

Tariff After: 31.5% to 39.5%
Despite India’s dominance in global jewellery exports, the tariff hike is a blow to this high-value sector. Competitors like China already face higher US tariffs, but countries like Mexico and Canada, which benefit from the USMCA agreement, now enjoy a clear advantage.

Textiles: A stiff blow

Exports to US: $9.5 billion

Tariff Before: 6% to 9%

Tariff After: 32% to 35%
The textile sector, one of India’s major export contributors, will be severely affected by the new tariffs. India must now compete with nations like Vietnam and Bangladesh, which face even higher duties, while simultaneously managing costs in the wake of global demand fluctuations.

Telecom equipment: competitiveness at risk

Exports to US: $6 billion

Tariff Before: 0%

Tariff After: 26%
Indian telecom manufacturers face a steep new barrier, especially when compared to more favoured trade partners like Vietnam. Analysts suggest that fast-tracking a Bilateral Trade Agreement (BTA) with the US and leveraging production-linked incentive (PLI) schemes could help restore competitiveness.

Auto parts: Squeezed by tariffs

Exports to US: $2.1 billion

Tariff Before: 2.5%

Tariff After: 27.5%

Auto part manufacturers now face significantly higher export costs. While this brings India’s tariffs in line with those levied on China, Indian exporters could still struggle due to lack of a BTA and higher operational costs.

Passenger cars & light trucks: Low export, low impact

Exports to US: $51 million

Tariff Before: 2.5%

Tariff After: 27.5%
Although the increase is steep, India exports very few vehicles to the US, so the impact remains minimal. However, it closes doors for future scaling unless addressed diplomatically.

Oil & gas: No change

Exports to US: $5.8 billion

Tariff Before and After: 5.2%
This sector remains stable, as most products are exempt under Annexure-II of the Executive Order.

Policy response urged

Industry stakeholders have called for urgent intervention from the Indian government. Many are pushing for a bilateral trade agreement with the US to restore competitiveness, especially in sectors now disadvantaged against USMCA members.