US Tariffs To Hit $87 Billion In Indian Exports: How Reliance, Sun Pharma, Hindalco And Others Could Be Impacted

The Federation of Indian Chambers of Commerce and Industry (FICCI) has voiced deep disappointment over US President Donald Trump’s decision to impose a 25% tariff on Indian exports starting August 1, along with secondary sanctions linked to India’s purchase of Russian oil.

The move has dealt a major blow to months of negotiations aimed at finalising a Bilateral Trade Agreement (BTA) between the two countries.

FICCI Calls For Quick Trade Pact

FICCI President Harsha Vardhan Agarwal called the tariff "unfortunate," warning that it would hurt Indian exporters in key sectors such as pharmaceuticals, textiles, gems and jewellery, and petrochemicals, which form the bulk of India’s $87 billion goods exports to the US.

“While this move is unfortunate and will have a clear bearing on our exports, we hope it will be short-lived, and a permanent trade deal will be finalised soon,” Agarwal said.

He emphasised the strength of India-US ties, noting that both countries share a deepening partnership spanning technology, defence, energy, and advanced manufacturing. However, negotiations hit a roadblock as India resisted US demands for greater market access in agriculture and dairy, citing risks to millions of Indian farmers’ livelihoods.

Also Read: ‘Could Have Been Worse': Trade Expert Biswajit Dhar On Trump's Tariff

US Is India's Largest Export Market

The tariff shock comes at a time when the US accounts for 18% of India’s total exports and is its largest trade partner, with a bilateral trade volume of $191 billion in 2024. Sectors like electronics ($12.6 billion), pharmaceuticals ($8.9 billion), and gems and jewellery ($9.3 billion) are highly exposed to US demand.

India also posted a trade surplus of $45.7 billion with the US last year, underscoring the stakes involved.

India Issues Statement On Trump Tariffs

Despite this, Commerce Minister Piyush Goyal has maintained that India will prioritise national interest over rushing a deal, rejecting American demands on sensitive sectors. Agarwal confirmed that a US trade delegation is scheduled to visit India in the second half of August to resume talks, with the goal of finalising negotiations by September or October 2025.

The government has taken note of a statement by the US president on bilateral trade. "India and the US have been engaged in negotiations on concluding a fair, balanced, and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective," the Ministry of Commerce and Industry said in a statement.

"The government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs. The government will take all steps necessary to secure our national interest, as has been the case with other trade agreements, including the latest Comprehensive Economic and Trade Agreement with the UK," it added.

Economists and industry experts are urging calm while pushing for policy reforms and diversification of export markets. Madhavi Arora of Emkay Global said the standoff must be seen "more through geopolitics than economics," given that India is central to US strategic interests in countering China.

India’s Export-Driven Companies

According to Trendlyne, several Indian companies have significant merchandise exports to the US across sectors such as pharmaceuticals, auto parts, consumer electronics, agrochemicals, and textiles. Key exporters include Reliance Industries, Titan, Sun Pharma, Hindalco Industries, Samvardhana Motherson International, Dixon Technologies, Glenmark Pharma, PI Industries, and UPL.

The chart highlights these companies by market capitalisation, with Reliance Industries leading at Rs 20,03,483 crore in refineries, followed by Sun Pharma at Rs 4,09,998 crore and Glenmark Pharma at Rs 63,086 crore in pharma, Hindalco at Rs 1,49,665 crore in aluminium, Motherson at Rs 1,08,626 crore in auto parts, Dixon at Rs 97,620 crore in electronics, and PI Industries and UPL at Rs 62,679 crore and Rs 53,519 crore in agrochemicals.

President Trump recently warned of a 200% import tariff on Indian pharmaceutical companies after giving them 12-18 months to set up manufacturing in the US. The Indian pharma industry earned $9 billion (Rs 16,330 crore), about 30% of its revenue, and Glenmark earned Rs 3,017.2 crore, about 22.9%.

The agrochemicals sector earned $5.7 billion (Rs 6,060 crore), 13% of its revenue, and PI Industries $405 million (~Rs 3,359 crore), contributing 42%. This highlights India’s heavy dependence on US exports and the risks posed by potential tariffs on key sectors.

FICCI urged both governments to avoid escalation, reminding them that American firms also benefit from India’s growing market and skilled talent pool. Agarwal said, “The US is not just a market for us but also benefits from India’s demand and talent. A balanced trade deal will help both nations unlock their full potential.”

With the August 1 deadline looming, the focus now shifts to upcoming trade talks. For exporters, the tariffs could mark a turbulent period unless a breakthrough is achieved.