Avoid Stocks In This Sector: PwC Hints At ‘Higher’ Impact Of Donald Trump’s Tariffs

Donald Trump's Tariffs: US President Donald Trump is set to impose tariffs on a global scale, and investors across the globe are eagerly waiting for more clarity on the Trump administration's tariff plans. In an exclusive interview with Republic Business , Anurag Sehgal, MD of PwC, said that the agriculture sector can be among the hardest hit, if the tariffs are distributed on a product-specific basis.

While the financial markets remain on edge, there is little to no detail on what to expect.

Donald Trump's Tariffs: Agriculture Sector To Be Impacted Adversely

According to Sehgal, the impact of tariffs on India will have to be seen. He added that one needs to observe how these tariffs are being announced, and whether they are being imposed on the basis of different countries or different sectors.

"The trade-weighted average tariff of the goods that India imposes on US imports is around 7.7% and the trade-weighted average import tariffs which US imposes on Indian exports is around 2.8%, so roughly 5% impact at the country level we may see, provided the tariffs are imposed at a trade-weighted average levy," Sehgal told Republic Business.

"However, if the tariffs are imposed on a product-specific basis, this impact could be greater, specifically for agricultural products, because India, in order to protect its domestic farmers and agriculturists, has high tariffs on agriculture," he added.

According to Sehgal, while these tariffs are all within India's WTO commitments, being at a developing stage of the economy, India has a leeway to have higher tariffs and India has been maintaining it.

Donald Trump's Tariffs: Why The Agri Sector Could Be Worst Hit

At that stage the impact on tariffs could be higher, he said, adding, there are still many proactive steps that have been taken by the Indian government. For instance, right from the Union Budget , Sehgal notes, there was a rationalization of duties on bikes, which had a direct impact on Harley Davidson prices in India, or Bourbon whisky, which also became more competitive in the Indian markets as import duties were reduced.    

Additionally, the equalization levy the Google tax was also abolished by Indian government. Further, the bilateral trade agreement may also help in negotiating the long-term impact on India-US trade relations.

Also Read: Donald Trump's Tariffs On April 2: How Are Pakistan, Japan, UK, China Reacting To Them?

What Is 'Liberation Day'?

Donald Trump, the President of the United States, has pegged April 2, 2025, as "Liberation Day" as this is the day when the Donald Trump administration will impose an array of new tariffs that could not just affect the trade system but also trigger a potential trade war.

As a result, investors who had kicked-off the year in high spirits with pro-growth policies from the Trump administration are spooked by the impending doom that tariffs might cause.