Donald Trump’s ‘liberation day’ tariffs: India’s agriculture, machinery, pharma, electrical, chemical sectors may see impact, say experts

Experts warn that U.S. reciprocal tariffs on Indian goods could impact various sectors, including agriculture, pharma, and electronics.

Goods from sectors, including agriculture, precious stones, chemicals, pharma, medical devices, electricals, and machinery may get impacted if the U.S. will go ahead with imposing reciprocal tariffs on Indian products, according to experts.

They said that these sectors could face additional customs duties from the Trump administration because of the high tariff differential or gap, which is the difference between the import duties imposed by the U.S. and India on a product.

At the broad sector level, the potential tariff gaps between India and the U.S. vary across the sectors.

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The gap is 8.6% for chemicals and pharmaceuticals; 5.6% for plastics; 1.4% for textiles and clothing; 13.3% for diamonds, gold, and jewellery; 2.5% for iron, steel, and base metals; 5.3% for machinery and computers; 7.2% for electronics; and 23.1% for automobiles and auto components.

“The higher the tariff gap, the worse affected a sector could be,” an exporter said.

U.S. President Donald Trump has said that the tariff announcements, scheduled for early morning Wednesday (April 2, 2025) , will amount to a 'Liberation Day ' for the U.S.